8th Dec 2022 14:28
(Alliance News) - Falanx Group Ltd on Thursday said its interim loss widened amid a revenue fall, but pointed to core order growth in two consecutive months after the half-year period.
The Reading, England-based cyber-defence and intelligence services company said pretax loss in the six months that ended September 30 was GBP1.5 million, more than doubled from GBP707,506 a year earlier. Revenue was marginally down to GBP1.788 million from GBP1.794 million.
The increased loss was primarily caused by administrative expenses increasing by 41% to GBP2.0 million from GBP1.4 million, alongside multiplying finance expenses to GBP167,581 from GBP36,071.
Falanx stressed orders for core services were up 17% to GBP1.9 million from GBP1.6 million a year earlier, while it also reported core order growth of 44% in October and November from a year earlier, following the half-year period.
It also reported a cash balance on September 30 of GBP2.0 million, multiplied from GBP510,000 a year earlier, of which around GBP1.5 million is reserved for use on acquisitions and investments. In October, it received the final GBP345,000 cash consideration from the sale of Assynt in October 2021.
"The drivers to spending on cyber security are ever increasing, and we look forward to growth in this year and next year. Our focus is to get to sustainable profitability within our existing resources and we are planning on achieving this by both recurring revenue growth and cost management," said Chair Alex Hambro.
Shares in Falanx were down 4.0% to 0.60 pence in London on Thursday afternoon.
By Greg Rosenvinge, Alliance News reporter
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