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CloudCoCo Group (GB:CLCO)
LSE:CLCO

CloudCoCo Group (CLCO) AI Stock Analysis

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GB

CloudCoCo Group

(LSE:CLCO)

Rating:58Neutral
Price Target:
0.50p
▲(66.67%Upside)
CloudCoCo Group's stock score is primarily driven by technical analysis, indicating current bullish momentum. However, financial performance concerns and poor valuation metrics weigh heavily, suggesting caution. Positive corporate events provide some optimism for future growth.

CloudCoCo Group (CLCO) vs. iShares MSCI United Kingdom ETF (EWC)

CloudCoCo Group Business Overview & Revenue Model

Company DescriptionCloudCoCo Group plc provides information technology (IT) and communications services to small and medium-sized enterprises in the United Kingdom. The company operates through two segments, Managed IT services and Value Added Resale. The Managed IT services segment provides recurring IT services, which have an ongoing billing and support elements. The Value Added Resale segment engages in the resale of hardware and software solutions. The company also offers cyber security services, such as security fabric, zero trust access, security driven network, adaptive cloud security, network security, end-point protection, email security, identity and access management, security operations, AWS security, security assessments, penetration and cloud application testing, and cyber essentials accreditation services; and connectivity services, including secure global learning, broadband and ethernet, SD-WAN, leased lines, public sector networks, Internet, and cloud connectivity, as well as LAN, WiFi, and analytics services. In addition, the company provides communications services, such as cloud telephone and unified cloud, SIP tunking, analogue calls and lines, inbound, mobile and mobile device management, contact center, and maintenance and support; public, private, and hybrid cloud services; VMware, colocation, data center migration and optimization, business continuity and disaster recovery, Veeam availability suite, and global streaming services, as well as services for gaming startups; and graphics processing unit and bare metal servers. Further, it offers Microsoft services; professional and IT consulting services; and cost analysis services. The company was formerly known as Adept4 Plc and changed its name to CloudCoCo Group plc in November 2019. CloudCoCo Group plc was incorporated in 2004 and is based in London, the United Kingdom.
How the Company Makes MoneyCloudCoCo Group generates revenue through a diversified business model that includes managed IT services, cloud solutions, and consultancy services. The company charges subscription fees for its managed IT services, which provide ongoing support and maintenance for clients' IT infrastructure. CloudCoCo also earns money by offering cloud solutions such as data storage, backup, and disaster recovery services, typically billed on a usage-based model or through fixed monthly fees. Additionally, the company provides cybersecurity services to safeguard clients' data and networks, contributing to its revenue streams. Strategic partnerships with technology vendors and service providers further enhance CloudCoCo's offerings and enable it to deliver comprehensive IT solutions, driving additional revenue.

CloudCoCo Group Financial Statement Overview

Summary
CloudCoCo Group faces significant financial challenges with consistently negative net income and declining revenues. The balance sheet shows high financial risk with negative equity. However, improved cash flow management provides some positive outlook.
Income Statement
45
Neutral
CloudCoCo Group's revenue has shown fluctuations over the years with a significant drop from 2023 to 2024. The company has consistently reported negative net income, resulting in a negative net profit margin. Despite a positive EBITDA margin in 2024, the EBIT margin remains negative, indicating ongoing operational challenges.
Balance Sheet
30
Negative
The company's balance sheet is weak with negative stockholders' equity in 2024, indicating financial distress. The debt-to-equity ratio is not calculable due to negative equity, and the equity ratio is negative, reflecting more liabilities than assets. This presents a risk of financial instability.
Cash Flow
60
Neutral
CloudCoCo Group has improved its operating cash flow and free cash flow in 2024, demonstrating better cash management. The free cash flow growth rate from 2023 to 2024 is significant, but the company's ability to generate cash flow relative to net income is hindered by negative earnings.
BreakdownSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue8.74M6.19M24.19M8.11M7.97M
Gross Profit499.00K595.00K5.97M3.22M1.68M
EBITDA2.01M660.00K144.00K-404.00K-713.00K
Net Income-3.15M-2.09M-2.29M-2.13M-2.68M
Balance Sheet
Total Assets17.50M18.84M20.53M14.76M13.05M
Cash, Cash Equivalents and Short-Term Investments1.04M794.00K1.52M1.18M588.00K
Total Debt6.19M7.02M5.55M4.26M3.75M
Total Liabilities19.59M17.81M17.52M9.59M8.08M
Stockholders Equity-2.09M1.03M3.01M5.17M4.98M
Cash Flow
Free Cash Flow1.48M493.00K847.00K-561.00K-22.00K
Operating Cash Flow1.53M839.00K962.00K-530.00K15.00K
Investing Cash Flow-106.00K-392.00K202.00K-594.00K120.00K
Financing Cash Flow-1.52M-1.17M-831.00K1.72M142.00K

CloudCoCo Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.30
Price Trends
50DMA
0.20
Positive
100DMA
0.17
Positive
200DMA
0.19
Positive
Market Momentum
MACD
0.03
Negative
RSI
78.48
Negative
STOCH
35.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CLCO, the sentiment is Positive. The current price of 0.3 is above the 20-day moving average (MA) of 0.22, above the 50-day MA of 0.20, and above the 200-day MA of 0.19, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 78.48 is Negative, neither overbought nor oversold. The STOCH value of 35.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CLCO.

CloudCoCo Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBIOM
66
Neutral
£33.49M9.802.80%8.75%1.47%-49.08%
58
Neutral
£2.12M
57
Neutral
$1.15B27.35-27.06%10.34%10.83%-5.57%
£3.32M-70.65%
GBFIN
70
Outperform
£18.26M18.1043.60%17.67%-53.23%
GBSYS
55
Neutral
£17.07M-26.77%2.89%-804.62%
GBSWG
54
Neutral
£11.20M-6.16%-11.19%63.83%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:CLCO
CloudCoCo Group
0.30
0.02
7.14%
GB:IOM
Iomart Group plc
29.70
-91.19
-75.43%
GB:CTAI
Catenae Innovation Plc
0.32
0.07
28.00%
GB:SWG
Shearwater
47.00
8.50
22.08%
GB:SYS
SysGroup
20.50
-14.50
-41.43%
GB:FIN
Cornerstone FS Plc
0.32
-0.04
-11.11%

CloudCoCo Group Corporate Events

Business Operations and Strategy
CloudCoco Group Sees Major Shift in Voting Rights
Neutral
Jul 3, 2025

CloudCoco Group PLC, a company identified by ISIN GB00B8GRBX01, has announced a significant change in its voting rights structure. MXC Capital Limited, based in Guernsey, has reduced its voting rights in CloudCoco from 10.63% to 0% as of June 30, 2025. This move, notified on July 2, 2025, indicates a complete disposal of their voting rights, which could impact the company’s governance and stakeholder dynamics.

M&A TransactionsBusiness Operations and Strategy
CloudCoco Group Sees Major Shareholder Change with Tialis Acquisition
Neutral
Jul 3, 2025

CloudCoco Group PLC has announced a significant change in its shareholder structure, with Tialis Essential IT PLC acquiring a substantial 10.63% of the voting rights. This acquisition marks a notable shift in the company’s ownership, potentially impacting its strategic direction and market positioning.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
CloudCoCo Group’s Strategic Shift and Growth Focus in H1 2025
Positive
Jun 30, 2025

CloudCoCo Group has announced its interim results for the first half of 2025, highlighting a strategic transformation following the sale of its legacy businesses. The company has repaid significant debt, reduced costs, and is now focused on expanding its e-commerce and IT procurement operations. Despite a decrease in revenue compared to the previous year, CloudCoCo has improved its gross margin and is exploring new growth areas to achieve sustainable profitability. The company has also enhanced its operational efficiency and customer satisfaction, positioning itself for long-term growth and value creation.

Shareholder MeetingsBusiness Operations and Strategy
CloudCoCo Group plc Successfully Passes All AGM Resolutions
Positive
Apr 28, 2025

CloudCoCo Group plc announced that all resolutions were passed at their Annual General Meeting, reflecting the company’s strong operational and strategic alignment. This outcome underscores CloudCoCo’s robust positioning in the technology sector and its commitment to growth, potentially benefiting stakeholders through continued innovation and market expansion.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 05, 2025