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 group’s 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.
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 and 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 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.
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.