Falanx Group (LON:FLX), the global cybersecurity and intelligence provider, today announced its interim results for the six months ended 30 September 2019.
· Group revenues increased 21% to £2.64m (H1 2018: £2.18m).
· 31% increase in the intelligence business unit (“Assynt”) H1 sales to £0.93 (2018: £0.71m), Cyber business unit increased by 16% to £1.71m (H1 2018: £1.48m)
· Group monthly recurring revenues in September 2019 of £0.29m (September 2018: £0.22m). Overall recurring revenues comprised 56% (2018: 53%) of total revenue in the 6 month period
· 6m to 30 September 2019 Adjusted EBITDA loss £0.93m (H1 2018: £0.71m) after £0.3m spend in readiness for our major Cyber opportunities
· Cash at period end of £708k (H1 2018: £69k) with receivables of £1.76m (H1 2018: £1.18m). The receivables balance has reduced post-period by circa £0.2m and collections remain strong
· The new Security Operations Centre (“SOC”) in Reading is now fully operational and ready to support SolarWinds
Mike Read, Chief Executive Officer of Falanx, commented:
“We are reporting strong revenue growth of 21% for this six-month period during which we have invested to position ourselves for the considerable opportunities for our business. The move to the new premises in Reading has delivered a stronger operational infrastructure for the Group as we prepare to support SolarWinds, and we expect this to deliver benefits in the second half of the current financial year as they rollout their product. The second half has been historically a stronger period in terms of demand and delivery of our services, and we are delighted that it has started well with increased activity for our Cyber business. This combines well with the major increase in recurring revenue for the Assynt division as it has moved into sustainable profitability in recent months.”
“The Board continues its focus on driving top line growth and reducing costs as it targets cashflow breakeven. Demand for our services is increasing as the Company sees strong growth in its sales pipeline. As a result, the Board is confident that the Company will deliver on its growth strategy and continues to view the future with optimism.”