CloudCoCo sharpens focus on e-commerce and IT procurement as it targets £15m revenue within three years

The latest announcement is out from CloudCoCo Group ( (GB:CLCO) ).

CloudCoCo Group, the Sheffield-based e-commerce and IT procurement specialist, has reshaped its business around its MoreCoCo marketplace and Systems Assurance B2B procurement arm after selling its legacy managed services units. The company now operates as a lean, debt-free and asset-light technology group focused on next-day delivery of a broad IT product range to business clients, supported by growing automation and a branded WebStore serving around 60 customers.

For the year to 30 September 2025, CloudCoCo expects continuing operations to deliver about £8.0 million in revenue, slightly below the prior year but ending with a quarterly run-rate nearing its £10 million target as vendor disruptions eased. Trading EBITDA is set to rise modestly to roughly £80,000, net profit around £2.5 million is largely driven by gains on disposals, gross margins reached about 15% before fees, and the group closed the year with £635,000 in cash and no long-term debt.

Operationally, more than half of e-commerce orders now require no manual handling, the product catalogue has expanded significantly, and Systems Assurance added 11 new business customers, reinforcing repeatable, software-enabled income. Management has also tightened cost discipline, cutting PLC-level expenses by 21% and voluntarily reducing director salaries, to hasten a shift to sustainable cash generation at group level.

Looking ahead, the board is targeting sustainable margins on annual revenues of at least £10 million as a foundation for consistent positive cash flow. It aims to push beyond this with ambitions to surpass £15 million in revenues within three years, underpinned by marketplace diversification, more direct website sales, expanded B2B engagement, margin-focused digital marketing and investments in automation and AI tools to handle higher transaction volumes without significant headcount growth.

The most recent analyst rating on (GB:CLCO) stock is a Hold with a £0.50 price target. To see the full list of analyst forecasts on CloudCoCo Group stock, see the GB:CLCO Stock Forecast page.

Spark’s Take on GB:CLCO Stock

According to Spark, TipRanks’ AI Analyst, GB:CLCO is a Neutral.

CloudCoCo Group’s overall stock score is primarily impacted by its weak financial performance and poor valuation metrics. The company’s financial instability, highlighted by negative equity and earnings, is a major concern. Technical analysis indicates bearish momentum, further weighing down the score. Improved cash flow management offers a slight positive, but significant operational and financial improvements are needed to enhance the stock’s attractiveness.

To see Spark’s full report on GB:CLCO stock, click here.

More about CloudCoCo Group

CloudCoCo Group is a Sheffield-based technology group focused on e-commerce and B2B IT procurement. Operating through its MoreCoCo online marketplace and Systems Assurance division, the company offers tailored, next-day delivery of a catalogue of more than 190,000 IT products to business customers, supported by strong vendor partnerships and a software-enabled WebStore platform.

The streamlined group positions itself as an asset-light, growth-focused provider of IT hardware and related solutions, targeting enhanced efficiency, security and agility for clients. It is concentrating on scaling recurring B2B revenue streams and leveraging automation to process over half of its e-commerce orders without manual intervention, aiming to drive margin improvement and operational scalability.

Average Trading Volume: 674,672

Technical Sentiment Signal: Sell

Current Market Cap: £812.1K

Find detailed analytics on CLCO stock on TipRanks’ Stock Analysis page.