(Alliance News) - CloudCoCo Group PLC on Tuesday said Chief Executive Officer Mark Halpin has stepped down from his role with immediate effect after having just published its delayed set of full-year results.

Shares in CloudCoCo fell 32% to 0.50 pence each in London on Tuesday afternoon.

Halpin had founded the London-based provider of managed IT services and communications solutions in 2018 and had been its CEO ever since.

Ian Smith, CEO of MXC Capital Ltd the parent of MXC Guernsey Ltd, CloudCoCo's loan note holder, will join CloudCoCo as interim CEO until a replacement is found.

Non-Executive Chair Simon Duckworth said: "We thank Mark for his service to the business during a period of both organic and acquisitive growth and wish him well with his future endeavours."

This comes as CloudCoCo announced that it had reached an agreement with its loan note holder, MXCG to extend the redemption date of the loan notes from October 21, 2024 to August 31, 2026.

Interest will continue to accrue on the loan notes at the current rate of 12% until redemption, CloudCoCo said. However, all other terms of the loan notes remain the same.

The company also announced its results for the full-year ended September 2023, and as a result, it resumed to trading on AIM. CloudCoCo shares were suspended earlier this month after it failed to publish its annual results on its March 31 deadline.

"Despite the best efforts of all parties, the company requires further time to finalise these accounts and for the auditor to complete its procedures with respect thereto. The company expects the accounts to be published before the end of April," CloudCoCo had said at the time.

Revenue rose 7.3% to GBP26.0 million in financial 2023, from GBP24.2 million the year before. 64% OF this was generated from recurring contracts, CloudCoCo said.

Pretax loss remained the same to a year ago, at GBP2.6 million.

Looking ahead, the firm said that the extension of the loan note term agreed with MXCG will "allow the group to focus on the development of its business."

"While conscious of the prevailing economic headwinds and the impact on some of our customers, we are well placed to continue to navigate them and are confident of making continued steady strategic and commercial progress in the current financial year," it said.

By Sabrina Penty, Alliance News reporter

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