27th Apr 2020 16:11
(Alliance News) - Crossword Cybersecurity PLC on Monday posted a flat annual loss, with higher finance costs and cost of sales offsetting a revenue rise.
The cyber security and risk-focused technology commercialisation company reported a GBP2.1 million loss for 2019, flat from the year before, despite an 18% rise in revenue to GBP1.3 million from GBP1.1 million.
Cost of sales increased to GBP1.4 million from GBP1.0 million, resulting in a swing to a gross loss of GBP126,593 in 2019 from a GBP54,088 gross profit in 2018. On top of this, finance costs and other interest payable multiplied to GBP24,351 from GBP1,237.
Crossword Cybersecurity will hold its annual general meeting on May 28, though shareholder are not permitted to attend in person.
Chief Executive Tom Ilube said: "2020 is set to be a big year for Crossword. There is no let up in the deluge of major cyber security incidents that organisations are facing, ranging from the second biggest data loss in history, 900 million records stolen from First American, the real estate title insurer, to Travelex GPB4.6 million ransomware attack and Biostar data breach involving 1 million fingerprints used by the UK Metropolitan Police and other agencies.
"The company has just completed a placing of 363,617 ordinary shares to raise GBP836,319. In addition, I intend to subscribe on the same terms for 73,914 ordinary shares to complete the total fundraise of GBP1 million following the end of the current close period, following the publication of these 2019 results.
"I am delighted with the continued support we have received from our shareholders in this latest fundraising. Our pipeline is standing at approximately GBP6 million split between both products and consulting and these funds will enable us to continue to drive business growth over the next 12 months. With the market turbulence caused by Covid-19, our first priority is the welfare of our staff and all stakeholders. Our flexible approach enabled us to quickly and effectively implement remote working before it was mandated, with minimal impact on clients and sales activity."
Shares in Crossword were down 11% at 245.00 pence in London on Monday afternoon.
By Anna Farley; [email protected]
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