3rd Dec 2019 10:30
(Alliance News) - Falanx Group Ltd on Tuesday said its loss widened in the first half of its financial year due to increased investment in its Cyber Security division.
Shares in Falanx were down 13% at 1.38 pence in London in morning trade.
The cyber defence firm reported a GBP1.6 million pretax loss for the six months ended September 30, far wider than its GBP969,803 loss the year before. Revenue improved, however, rising 18% to GBP2.6 million from GBP2.2 million.
During the period, Falanx spent more than GBP300,000 to expand its Cyber Security marketing capabilities, as well as to build out its delivery capability and physical infrastructure and support its Solar Winds programme, causing its loss to widen.
Falanx was chosen by Austin, Texas-based IT infrastructure management firm SolarWinds Worldwide LLC to be its only threat monitoring service provider in the UK and South Africa. SolarWinds is now live and improvements are set to begin in the first quarter of calendar 2020.
The mid-market product is growing as well, which also is expected to progress in early 2020. Falanx moved to a new security operations centre in Reading so as to support SolarWinds.
Chief Executive Mike Read said: "The move to the new premises in Reading has delivered a stronger operational infrastructure for the group as we prepare to support SolarWinds, and we expect this to deliver benefits in the second half of the current financial year as they rollout their product. The second half has been historically a stronger period in terms of demand and delivery of our services, and we are delighted that it has started well with increased activity for our Cyber business."
Read added: "The board continues its focus on driving top line growth and reducing costs as it targets cashflow breakeven. Demand for our services is increasing as the company sees strong growth in its sales pipeline. As a result, the board is confident that the company will deliver on its growth strategy and continues to view the future with optimism."
By Anna Farley; [email protected]
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