Falanx Group Ltd (AIM: FLX), the global cybersecurity and intelligence provider, is pleased to announce its interim results for the six months ended 30 September 2018.
- Group revenues increased 51% to £2.2m (2017: £1.4m) and gross margin increased to 36% (2017: 27%)
- 198% increase in Cyber division revenues to £1.4m (2017: £0.47m)
- Underlying EBITDA £0.71m loss (2017: £0.85m loss), reported £0.97m loss (2017: £1.0m loss)
- Recurring revenues remain strong and grew by 41% to £1.2m and provide a strong underpinning for the Group
- Sales force strengthened and delivering high levels of new revenue opportunities for the Group
- First Base now fully integrated and value of order levels are c20% ahead of last year
- SecureStorm, acquired on 16 July 2018, recently secured a significant £0.6m renewal contract from a high-profile UK Government department
Post Period Highlights
- In parallel with the transformational deal with SolarWinds MSP and leveraging the Threat Monitor Service Provider (TMSP) platform, we are pleased to announce a new client contract worth £60,000 for the provision of monitoring services over a three-year period which has annual payments in advance
- Our strategic intelligence business, Falanx Assynt, has recently secured a three year £0.2m+ contract with a major European oil & gas Company
- Post period end Falanx has won 14 further new logo contracts across the Group
- Tendering opportunities for new business are currently at record levels
Mike Read, Chairman and Chief Executive Officer of Falanx, commented:
"The ever-growing threats which Cyber-attacks pose are becoming more prevalent, providing an increasing opportunity for Falanx. We have worked very hard to strengthen the management team and improve our routes to market - the result of this is bearing fruit.
We are extremely excited by the opportunity which our SolarWinds partnership creates and, though this has led to an increased investment in resource, we are highly confident the opportunity for Falanx is significant.
Recurring revenues continue to be a major focus for Falanx and our pipeline of new business is at record levels. As we continue to develop our suite of Cyber Security solutions, we view the future for Falanx and our loyal shareholders with considerable confidence."