CORRECTION: Trading Update and PDMR Share Dealing

RNS Number : 5477S

Toople PLC

17 March 2021

 

The following amendment has been made to the Trading update and PDMR Share Dealing announcement released on 17 March 2021 at 7.00am under RNS No 4864S.

The price at which the shares were sold has been amended to 0.06 pence per share instead of 0.6 pence per share.  All other details remain unchanged.

The full amended text is shown below

Toople PLC

("Toople" or the "Company")

CORRECTION: Trading update and PDMR Share Dealing

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Toople PLC (LSE: TOOP), a provider of bespoke telecom services to UK SMEs, is pleased to provide the following trading update.  Further to recently announced significant contract wins, monthly orders are continuing to grow and gross margins are materially higher than the pre-pandemic period.  This has enabled monthly cash burn to be reduced by 60% compared with 2020 and this trend is expected to be sustained, moving the Company towards positive cash flow.  The Directors believe that trading will continue to demonstrate significant progress as the current UK lockdown begins to ease and the economy moves towards the post-pandemic period.

The Company also announces that Juli Carter, wife of John Carter who is Managing Director of Toople's trading subsidiary Direct Market Services Limited ("DMSL"), has sold 1,050,000,000 ordinary shares at a price of 0.06 pence per share. These shares were placed with existing and new shareholders by Novum Securities Limited.

The majority of the net proceeds from the disposal will be used to repay £462,000 owed to DMSL at the time that DMSL was acquired by Toople in February 2020. Consequently, the Company's balance sheet has been materially further enhanced, which together with the lower cash burn provides a working capital platform to enable the Company to progress towards profitability.

The balance of the proceeds are intended to be used by John Carter to fund a High Court action against a third party.  This dispute does not involve Toople and there is no potential liability to the Company. Novum Securities Limited agreed to waive the terms of the lock-in agreement dated 30 January 2020 only in respect of the shares disposed, in order to ensure that Toople receive the funds due to them.

This announcement contains information which, prior to its disclosure, was inside information as stipulated under Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310 (as amended).

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For further information :

Toople PLC Andy Hollingworth, Chief Executive Officer Paul White, Chief Financial Officer	Tel: [phone]
Novum Securities Limited David Coffman Colin Rowbury	Tel: [phone]
Belvedere Communications John West / Llew Angus	Tel: [phone]

About Toople PLC

Toople PLC is incorporated in the UK and listed on the main market of the London Stock Exchange.  The business currently trades under four main brands:  toople.com ; dmsluk.co.uk ;  broadbandandphones.co.uk ;  checkthatcompany.co.uk .

Toople.com  provides bespoke telecoms services for its fast growing target market of UK SMEs with between one and 500 employees.  Services offered by the Group include business broadband, fibre, EFM and Ethernet data services, business mobile phones, cloud PBX and SIP Trunking and Traditional Services (calls and lines) all of which are delivered and managed via the Group's proprietary software platform. 

In February 2020, Toople completed the acquisition of  DMS Holding (DMSL) .  DMSL commenced trading in 2002 and provides unified communication services in the UK, ranging from a single phone line to a multi-site unified comms VoIP platform, delivered via a network of telecoms and IT carriers and content providers across the UK including BT Business, BT Global Services, Gamma, EE, Vonage, TalkTalk Business and O2.  DMSL acts as a BT Premier re-seller for broadband connectivity, mobile and fixed voice and cloud services and is responsible for over 250,000 BT customers and over 400,000 Revenue Generating Units.

The acquisition of DMSL was transformational for Toople, as it also expanded the Group's reach into the UK residential market, which is experiencing a period of rapid change, as operational automation further develops and more people choose to (or are forced to) work from home.

The Company also owns a telecoms price comparison website and a service offering company credit reference checking and reports.  These complement the Group's IT and telecoms services.

All the Group brands seek to differentiate themselves by offering IT, telecoms and broadband solutions, with robust and reliable packages, that enhance a customers' business and are based on trust and transparency, with no hidden fees within pricing policies.  This provides customers with a clear understanding of cost and fixed prices for the duration of their contracts.

 

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