24th Oct 2019 12:31
(Alliance News) - Crossword Cybersecurity PLC on Thursday said 2019 revenue will be hurt by changes in accounting standards.
The AIM-listed technology commercialisation company said trading for 2019 is broadly in line with expectations. However, revenue in 2019 is expected to come in below current market expectations, Crossword said, as a result of recent changes in accounting practices relating to IFRS15 in respect of recognition of revenue from the company's software-as-a-service contracts.
More positively, the company noted that due to these changes, there will be a corresponding increase in revenue in future years.
"Underlying current trading is still broadly in line with expectations and the outlook remains strong with the pipeline having doubled since the beginning of the year," said Chief Executive Tom Ilube. "However, as a result of accounting policy changes we will be reporting revenue for the current year below market expectations."
Additionally, subject to shareholder approval, Crossword said it is moving forward with entering into loan agreements of GBP1 million, having GBP1 million committed from third parties and current shareholders and directors, to satisfy the company's near to mid-term cash requirements.
The funds will be made available for general working capital purposes. The loan terms include interest at a fixed rate of 12% per annum, an equity element and a term of three years.
Ilube added: "The board is pleased to confirm our plans to raise the required GBP1 million of working capital in the most efficient way as proposed loans."
The stock was untraded in London on Thursday, last closing at 458.00 pence a share.
By Evelina Grecenko; [email protected]
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