14th Aug 2018 11:09
LONDON (Alliance News) - Shares dropped in Falanx Group Ltd said on Tuesday its loss widened as administrative and restructuring costs increased in spite of growing revenue in its recently ended financial year.
Shares in the cyber defence and intelligence service provider fell 14% at 4.30 pence on Tuesday
For the year to the end of March, Falanx's pretax loss widened to GBP2.5 million from GBP1.7 million the year before, due to increased administrative expenses and costs from acquisitions and business restructuring.
During the year, Falanx acquired two technology and cyber security-focused companies: Cloudified Ltd in July for GBP180,000 and AuditSec Services Ltd in September for GBP53,438.
Revenue grew by 10% to GBP3.0 million from GBP2.7 million the prior year, mainly from 18% revenue growth in Falanx's Cyber business due to greater contract momentum in the second half of the year.
Falanx said it anticipates a stronger performance in the future, and to achieve this will focus on utilising technology to meet changes to the market and using its channel partners to sell its "Security as a Service" to its client base.
The group added that in July, Falanx has reached earnings before interest, taxes, amortisation and deprecation profitability, in line with management expectations.
"In the past eight months we have: significantly increased revenues through contract wins and acquisitions, restructured our management team, refocussed our strategy, won important and large customer contracts, broken into new markets, acquired and integrated several businesses, built a strong team, forged new channel partnerships, successfully delivered large scale security solutions and deepened our intelligence and security relationships with global clients," said Chief Executive and Chairman Mike Read.
Related Shares:
FLX.L