Global cyber security and intelligence provider, Falanx Group (AIM: FLX), reported improved sales during the first half, however losses widened on significant investment in its cyber security offerings.
The Company’s revenues rose 21% year-on-year for the first six months, up to £2.64 million. This was led by a 31% increase in intelligence business unit H1 sales, which were up to £0.93 million, and cyber business sales up 16% to £1.71 million.
However, the Group’s adjusted EBITDA loss widened from £0.71 million to £0.93 million on-year, after a £0.3 million spend on ‘major Cyber opportunities’.
Falanx Group added that the new Security Operations Centre in Reading is fully operational and ‘ready to support SolarWinds’.
Elsewhere in the tech sector, ULS Technology plc (AIM: ULS) suffered in a challenging market, Solid State plc (LON: SOLI) boasted a strong first half, IMImobile PLC (LON: IMO) posted strong half-year results, and Wirecard AG (ETR:WDI) secured a partnership with Yeepay.
Falanx Group comments
Mike Read, Chief Executive Officer of the Group, stated,
“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.”
The Company’s share price dipped 5.16% or 0.082p to 1.52p per share 03/12/19 13:48 GMT. Neither a dividend yield nor a p/e ratio are available for Falanx Group stock, their market cap is £6.11 million.