Faith in Tech IPOs

The recent weakness in Defenx (LSE: DFX) highlights a buying opportunity. The first results since listing on AIM in December, will be announced on Tuesday 19^th. DFX Floated at 148p with £2.1m raised to fund growth at this smart phone mobile security business which owns its Core Intellectual Property. DFX is profitable and turnover should be Euro 4.3m, which is 80% ahead of last year. To date 2.9m security software licences have been sold and faster growth is expected.

New products have been launched since December; the Defenx suite of products is now available for Windows 10 devices, which along with Andriod and IOS it brings availability to 90% of the smart phone platforms. Defenx Cloud Backup is also available, which offers online backup, synchronisation and file sharing across multiple mobile and desktop devices. It is available in 16 languages and elements of it are not commonly available.

Competitively priced Defenx have global distributions partners primarily in Europe, the Middle East and Africa.  The marketing strategy is focused on while-label and profits sharing arrangements with Distributors, Telecom companies and hardware manufacturers.  WH Ireland have a 200p price target as they say that it’s prospective P/E is around half of other comparative listed companies.

Financials

There is no structured debt so the net proceeds of £1.4m is to develop the business.

Trading Strategy

When new investors start discovering  this growth opportunity hopefully with  the figures next week the price should improve.

Defenx (LSE:DFX)

118p (115p-120p)

Mkt Cap: £7.6m

Next Results: Finals Tuesday 19^th April

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