A change in long-term strategy led to a slump in revenues at Main Market listed cybersecurity company Narf Industries (LON: NARF). It was also hit by US government budget delays.
In the six months to September 2024, revenues dipped from $3.11m to $1.18m. The loss increased from $1.01m to $1.87m. Cash has fallen to $136,000, which is after receiving $864,000 from the chief executive. The cash outflow from operating activities was $1.34m. Net liabilities are $1.5m.
Since the end of the period, the working capital loan facility provided by chief executive Steve Bassi was raised from $2.5m to $3m. He has promised not to demand repayment until the group has cash to pay. Directors have deferred salary, which achieved savings of $500,000 in the first half, until sufficient revenues are being generated. That means that the company should be able to meet obligations.
The focus is the SocialCyber platform, which will provide recurring revenues. Narf could inject this open source code protection IP into a joint venture. This would bring in additional finance.
There are $900,000 of annual salary savings that have been made. There is a potential $5m plus multi-year contract that could be awarded by the US government in the first quarter of 2025. The share price has fallen 4.17% to 0.58p.