19th Sep 2019 11:07
(Alliance News) - Falanx Group Ltd on Thursday reported a narrowed annual loss as the cyber security firm saw "contract momentum" from its three operating units.
In the year ended March 31, Falanx reported a narrowed pretax loss to GBP1.9 million from GBP2.5 million the year before.
The cyber security and intelligence service provider almost doubled its revenue in the period, rising to GBP5.2 million from GBP3.0 million the year before.
The revenue growth was attributed to "increased contract momentum" in each of the company's divisions, Falanx said.
Falanx Cyber, the company's core division, saw its revenue more than quadruple to GBP3.6 million.
"The combination of strong and growing demand for the Falanx Cyber portfolio of services, market pull of the MSP 'Channel' model and the unique opportunity offered by SolarWinds, indicate another year of high growth ahead," the company said.
Falanx added: "Overall the cyber sector is experiencing strong macroeconomic drivers and is forecast to grow significantly over the next few years. To keep pace with this continuing high growth, Falanx Cyber has further invested in people, processes and infrastructure to expand capacity and maximise the revenue growth opportunities of the current year and beyond."
Falanx reported a 21% increase in administrative costs in the period to GBP4.1 million from GBP3.4 million the year before.
Chief Executive Mike Read said: "This has been a very busy period for Falanx with a number of operational improvements made and a renewed focus on channelling our efforts towards the most profitable sales opportunities. We have seen strong organic growth across the core areas of our business, and we see growth continuing into the current financial year."
Read added: "We anticipate the SolarWinds partnership to start to bring benefits in the second half of the current financial year as they rollout their product."
Falanx signed a partnership with American software company SolarWinds Inc to be its Threat Monitoring service provider in the UK, continental Europe and South Africa, giving Falanx "first-mover" advantage to SolarWinds 2,000 managed service providers in the UK.
"The board has set out its strategy of driving top line growth and reducing costs as it targets cashflow breakeven. We are confident of achieving this goal in the near term as our sales pipeline continues to grow with our enhanced cyber security offering. As a result, the Board views the future with optimism," continued Read.
Falanx said its trading in to the end of July is in line with management expectations, with its Cyber unit delivering 10% growth on the year before.
Shares in Falanx were 4.2% higher in London on Thursday at 1.38 pence each.
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