Investor Information


Business Overview

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:

Tooplewww.toople.com

DMSLwww.dmsluk.co.uk

Broadband and Phoneswww.broadbandandphones.co.uk

Check that Companywww.checkthatcompany.co.uk

Toople.com provides bespoke telecoms services for its fast growing target market of UK SMEs with between one and 50 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.

Toople PLC has a strong and highly experienced Board and management team who are focused on growing the business both organically and by identifying earnings enhancing strategic acquisition opportunities.


Board of Directors

Andrew (Andy) James Hollingworth, Chief Executive Officer

Andy has worked in the telecoms industry for the past 25 years, operating at senior levels across multiple functions and boards, including sales, marketing and operations. Most of his work has been driving organic and acquisitive growth strategies to achieve revenue growth. Andy has held a number of senior positions including director of wholesale, director of small business and corporate, head of CRM, head of distribution, head of sales operations and head of loyalty and retention.

As director of wholesale at TalkTalk plc he lead a growth strategy in the UK reseller market that took the business from having below £50m in turnover to £250m in turnover, which translated into £150m in net profit and around 30 members of staff. Based on his successes, he was moved to an underperforming area of TalkTalk; the small business and corporate segment. He turned that division of the business around from a 18% customer loss, into growth of over 3,000 new customers per month within three years. Andy was appointed to the Board of Toople on 2 March 2016 having worked with the company for several months prior to this.

Kevin Brian Lawrence, Chief Financial Officer

Kevin qualified as a chartered accountant in 1986 with Coopers & Lybrand (now PwC) where he spent 14 years before moving to Grant Thornton. He has subsequently held senior financial positions in a wide range of businesses including group finance director of Lighthouse Group plc, an AIM quoted financial services business that he joined at IPO and is now the largest listed independent financial advice business in the UK, and CFO of Cybit Holdings plc from 2002 to 2010 when the business was bought out by a US private equity firm.

In 2011 Kevin led Cybit through a reverse takeover of Masternaut Group to become the pan-European leader in telematics, with revenues of EUR100m and 500 employees. More recently, Kevin was CFO of Atego Group, a software development company which was acquired by PTC Inc, a NASDAQ listed company, in 2014. Kevin currently holds the position of CFO at Gardien Group, a private equity backed business specialising in the testing of PCB boards that are fabricated for clients supplying global automotive, defence, telecoms, aerospace, medical and computer hardware markets. He joined Toople in June 2018.

Richard John Horsman, Non-Executive Chairman

Richard was senior independent non-executive director of Plethora Solutions Holdings plc between early 2011 and mid-2013 and previously CEO of Cybit Holdings plc, both admitted to trading on the AIM market. During his tenure at Cybit the company grew, from inception, to revenues of £25 million and went through multiple acquisitions. In January 2010, Cybit was acquired in a deal with a US based private equity firm, which returned £24 million to shareholders at over a 100% premium to the prevailing market price. Prior to this he held several senior roles in the IT industry including with Global Telematics plc and The Baan Company.

Most recently (from 2011 to the end of 2014) Andrew was Chairman and CEO of Atego Group – a private company providing mission and safety critical software and consulting services to the aerospace, military and automotive sectors. Atego was sold to PTC Inc, which is listed on NASDAQ.


Investment Case

Toople targets both the direct to customer (retail) and the wholesale markets, where white label services are offered on behalf of other companies.

The Group has relationships with well over 100 partners which actively sell the groups services as a complement to the direct sales channels.  These companies are given access to Toople’s proprietary software platform.

Services are immediately available to customers at an attractive price that is always fixed for the life of the contract.  This fixed price offering is one of the Group’s unique selling points.

Toople PLC’s successful “Online First” business model is supported by direct digital marketing campaigns and a sales centre based in Durban, South Africa.  The business uses multiple sales and marketing channels and a proprietary delivery platform, which ensures that customers receive instant quotes based on the most competitive prices available.

Reach across the UK small business and residential markets continues to grow rapidly, firmly positioning the business as the alternative telecommunications provider of choice in its target markets.


Business Model

Toople PLC’s digital marketing spend increases in line with its growth, and the goal is that in excess of one million business owners and decision makers in the UK see its propositions every month via direct digital marketing, the use of social media channels and internet search engines.  Increases in customer numbers vindicate this.  Customer conversion rates continue to improve driven by a dedicated sales and marketing resources in Durban, South Africa.  DMSL also has sales and quality operations based in the same Durban site.

The combined group is now of larger scale, opening up opportunities to benefit from operational gearing and operating efficiencies.

A growing customer base results in a lower cost of acquisition per customer, and boosts Toople PLC’s future outlook, as operational automation further develops, more people continue to work from home, and average revenue per user improves.

Toople PLC is in a position to invest further in its digital marketing strategy to increase the rate of customer enquiries and correspondingly to improve conversion rates.  Given that these customers are typically signing two year fixed contracts, the company can use this opportunity to accelerate its timeframe to cash generation and profitability.


Growth Drivers

Growth is being driven by a number of factors, not least a noticeable switch by UK SMEs to superfast fibre broadband, ahead of the eventual closure of existing legacy copper infrastructure in 2025.

As businesses are forced to review their existing telecoms services, many are seeking new solutions which provide enhanced quality at an affordable fixed price.  SMEs are increasingly dissatisfied with a lack of price transparency, poor service offerings and poor customer service from the traditional tier one providers.  Toople is taking advantage of these failings by its bigger competitors and is fast becoming a major disruptor in our segment of the market.

This trend is coupled with a seismic shift in UK working practices, whereby more and more workers are either electing or being asked to work from home, driving more reliance on home based telecoms, IT and broadband solutions.

Toople PLC’s operating brands have experienced substantial growth since inception, in terms of both customer numbers and revenue generated by those customers.  Products are flexible and carrier agnostic. This, coupled with excellent customer support, has resulted in impressive new customer acquisition numbers over time.


Summary

Toople PLC aims to become the telecoms supplier of choice for its target markets in the UK, by delivering instant, easy, communication solutions with a transparent pricing model.  This will mean further investment in direct digital marketing to drive customer and profit growth, as well as visibility and predictability of revenues over the medium and longer term.

Following the acquisition of DMSL, the combined group is now of larger scale, opening up opportunities to benefit from operational gearing and operating efficiencies.  DMSL is also cash generative, accelerating Toople PLC’s timeline to achieve profitability and positive cash generation.

Toople PLC will continue to grow by adding new customers, selling add-ins to existing customers and exploring synergistic acquisition opportunities.

The company is operating in a large and growing target market with a rapidly increasing customer base and clear demand for its products and services.

Our strategy is delivering an increasingly predictable recurring revenue stream and with an experienced and proven management team in place, capable of scaling the company both organically and via acquisitions, we believe the future for Toople PLC is very positive.


Shareholder services


Registrars
Share Registrars Limited
The Courtyard
17 West Street
Farnham
Surrey GU9 7DR

Date of admission
Toople PLC listed on the London Stock Exchange on 10 May 2016.

Share and share dealings

How do I buy/sell Toople PLC shares?
You cannot buy shares directly from Toople. You can buy or sell shares using any stockbroker or UK share dealing service.

What do I do if I have changed my name?
Please contact the registrars

What do I do if I move house?
Please contact the registrars

How do I transfer my shares?
Please contact the registrars

What do I do if I have lost my share certificate(s); how do I obtain a replacement?
Please contact the registrars

What do I do if the shareholder has died?
Please visit the Equiniti ‘Shareview’ Help platform, which contains more information on this

How do I check the number of shares that I hold?
Please contact the registrars


Regulatory news


Company documents

Reports and Accounts

Prospectuses

AGM Notices


Media

Articles on VOX Markets – all available via this link

https://www.directorstalkinterviews.com/market-risers-smith-nephew-solo-oil-toople/412819413

https://www.directorstalkinterviews.com/toople-plc-continues-to-perform-well-largely-unaffected-by-covid-19/412810545

https://www.insidermedia.com/news/central-and-east/funding-to-support-new-era-at-business-telephony-firm

https://www.proactiveinvestors.co.uk/companies/news/903439/toople-plc-reports-busier-than-expected-summer-trading-903439.html

https://www.sharecast.com/news/news-and-announcements/toople-raises-money-to-repay-loan-at-significant-discount–4729690.html

https://www.growthcompany.co.uk/toople-aiming-to-topple-bt-2550786/


Company Advisers

 

Financial Advisers
Cairn Financial Advisers LLP
Sandy Jamieson
Tel: 020 7213 0880
Brokers
Novum Securities Limited
David Coffman
Tel: 020 7399 9400
Financial PR
Belvedere Communications
John West / Llew Angus
Tel: 020 3687 2754

 

Auditors
PKF Littlejohn LLP
1 Westferry Circus
Canary Wharf
London
E14 4HD

 

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