20th Jan 2020 10:28
(Alliance News) - Kape Technologies PLC said Monday it expects to report a rise in earnings and revenue for 2019, driven by organic growth and acquisitions.
Shares in the London-based security software firm was up 6.1% at 170.85 pence on Monday.
For the year, Kape expects adjusted earnings before interest, taxes, depreciation and amortisation to be USD14.5 million, up 40% from USD10.8 million the year before, on revenue which is set to grow to by 27% to USD66.0 million.
The group said the revenue growth reflected its focus on customer acquisition investment for its higher margin Digital Privacy segment.
In December, Kape completed the USD95.5 million acquisition of LTMI Holdings, the holding company for US-based digital privacy firm Private Internet Access.
Kape said it considers the acquisition to be "significantly earnings enhancing", as the group user base grew to 2.4 million subscribers as at December 31 from 1.0 million on June 30.
Also in December, Kape said it expects adjusted Ebitda for 2020 to be between USD35 million and USD38 million, on revenue set to be in the range of USD120 million to USD123 million.
Looking ahead, Kape is focused on integrating PIA, and enhancing the group's growth by developing the product suite and consolidating its operations.
"In 2019 we transformed Kape into one of the most prominent global digital privacy companies, combining rapid organic growth with further expansion of our portfolio through development and the PIA acquisition," said Chief Executive Ido Erlichman.
"We have entered 2020 in a very strong position, focused on driving earnings growth and maintaining our historic levels of strong cash generation, alongside maximising the positive impact of our acquisitions," Erlichman added.
Kape will report its annual results on March 17.
By Dayo Laniyan; [email protected]
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