Tuesday 12 February 2019 2:32 pm

Aim-listed startup Loop Up's share price climbs as profits beat expectations

Shares at audio conferencing provider Loop Up rose almost nine per cent today as it told investors that profitability is “comfortably ahead” of expectations.

The London-listed software firm added that revenue was in line with analyst forecasts in today's trading update for its 2018 financial year.

Read more: Trade skyscrapers on a real estate stock exchange – here's how it works

Loop Up also listed a string of recent contract wins, as well as a three-year contract renewal worth at least £2.34m with Clifford Chance to host conference calls across the law firm's global operations.

Aim-listed Loop Up has also opened new offices in Chicago, Dallas, Los Angeles, Atlanta and Madrid.

“Looking ahead into 2019, we continue to see strong demand for the Loop Up product and remain confident in our ability to deliver future growth," said co-chief executives Steve Flavell and Michael Hughes.

“We're very pleased to report continued strong business performance with transformational revenue growth, and profitability ahead of consensus expectations,” they added.

LoopUp has been expanding since its merger with rival Meeting Zone last year, and has since fully integrated the firm with plans to migrate the audio conferencing business to the Loop Up platform by the summer.

Shares rose 8.5 per cent to 352.5p.

Read more: Hammond suggests no deal option could be removed on leaked call

Peter McNally, an analyst from Panmure Gordon and Company, reiterated a 'Buy' rating for investors, saying the current share price offers an “opportune entry point”.

“We also note that telecom-related recurring revenue tends to display resiliency in periods of low or negative economic growth,” he added.