CloudCoCo Interim Results Show Revenue Up 30% as Project Brightstar Gains Early Traction

There is also an important accounting wrinkle in the comparatives. H1 FY2025 included a large gain on disposal of subsidiaries, which is why that period showed total comprehensive profit of £2.8 million. Strip that out, and this year’s comparison looks much cleaner and more useful.

Management also points out that H1 is seasonally weaker than H2 for MoreCoCo, with December, January and February typically softer months. That is plausible, and revenue was still ahead year on year, so I would not get too hung up on the fact H1 revenue was below the £4.6 million reported in H2 FY2025.

MoreCoCo dominates CloudCoCo sales – strong growth, but concentration risk is obvious

MoreCoCo remains the whole story for now. E-commerce revenue from More Computers was £4.0 million, up from £3.0 million a year earlier, while Systems Assurance direct sales were £364k versus £367k.

That means 91.7% of group revenue came from e-commerce in the period. The good news is that online retail and procurement can scale quickly with the right systems. The less-good news is that this leaves CloudCoCo heavily reliant on one channel and one business model with modest gross margins.

The company is trying to improve revenue quality by pushing more direct website sales rather than relying too much on third-party marketplaces. That matters because direct sales usually carry lower fees and better net margins.

Investment in a new marketplace gateway and work on SEO and PPC should help product reach and direct traffic over time. Sensible moves, but investors should remember these are foundations, not guaranteed profit boosters.

Project Brightstar pipeline and first contract win – encouraging signs, not banked revenue yet

Project Brightstar is clearly the centrepiece of the growth story now. It is aimed at accelerating CloudCoCo’s expansion into B2B technology procurement, where contract sizes can be bigger and customer relationships stickier.

Post period end, the company says Brightstar has built a qualified pipeline in excess of £2.5 million across 27 active opportunities and secured its first tangible win in June 2026. That is encouraging, especially given how early the initiative appears to be.

But this is where retail investors need a cool head. A qualified pipeline is not the same as signed revenue. It means sales opportunities are live and credible, not that cash is arriving tomorrow.

Still, first wins matter because they show the strategy is not just PowerPoint. If Brightstar can convert pipeline into repeatable B2B revenue, it could help CloudCoCo lift both scale and margin quality.

CloudCoCo cash flow, fundraising and dilution – the bit you should not ignore

This is the most important caution flag in the whole RNS. The group recorded a net cash outflow of £352k in H1 FY2026, including a £300k operating cash outflow, and ended March with only £283k of cash.

That cash outflow was driven by working capital, meaning more money tied up in receivables and inventory and less support from payables. That can happen in a growing business, but it also explains why the April subscription looks necessary rather than optional.

CloudCoCo then raised £275k gross, with estimated net proceeds of about £260k, to fund growth including Project Brightstar. Chairman Simon Duckworth and his wife subscribed for £210,000 of that total, which is a strong vote of confidence and lifted their holding to about 21.16% of the enlarged share capital.

There is a cost to that confidence, though: dilution. The company issued 229,166,666 new shares, taking the total share count to 935,382,352 from 706,215,686. That is a big increase in the number of shares in issue, so existing holders who did not participate now own a smaller slice of the business.

One more nuance: the board talks about a debt-free model, but the balance sheet still shows £66k of current borrowings and a £5k lease liability, with total net debt of £71k. The better way to frame it is that long-term debt has been largely cleaned up, not that liabilities have vanished.

What matters next for CloudCoCo shareholders after these interim results

• Can Project Brightstar convert its pipeline into signed, profitable B2B contracts?
• Can annual revenue move towards the board’s £10 million short-term target while holding gross margin around 7%?
• Can direct website sales improve margin quality versus third-party marketplace sales?
• Can the group turn monthly cash flow positive without needing another raise?
• How much of the Trading Group EBITDA improvement can survive after plc costs?

My take on CloudCoCo shares after the H1 FY2026 results

Overall, this is a positive update with a few sharp edges. The simplified business is growing, underlying trading profitability is improving, and Brightstar has at least started with some momentum.

On the flip side, CloudCoCo is still a very small AIM company with limited cash, thin margins and a meaningful dependence on execution. The board’s targets of £10 million annual revenue and a longer-term £15 million ambition are interesting, but they are ambitions, not promises.

So my read is straightforward: better business, better direction, but still early and still risky. For retail investors, the next proof point is not another pipeline number – it is whether CloudCoCo can turn that growth into cash generation and sustainable profit after all the listed-company costs are included.