Defenx plc Trading Statement (9014U)

TIDMDFX

RNS Number : 9014U

Defenx plc

24 January 2017

24 January 2017

Defenx PLC

("Defenx", the "Company" or the "Group")

Trading Statement

Defenx PLC (AIM:DFX), the mobile security software company, is pleased to provide an update on its current trading and anticipated results for the year ended 31 December 2016 ("FY16").

Highlights

   --      Financial results for FY16 in line with management's expectations 

-- Revenues for FY16 of approximately EUR7.3 million representing 57% year-on-year organic growth

-- Acquisition of Memopal Srl ("Memopal"), a cloud backup and synchronisation business, completed

-- EUR1.5 million placing and subscription completed to support accelerated investment in new software

Financial performance

The Group is pleased to report that its financial results for the year ended 31 December 2016, which are expected to be released in early April 2016, are in line with management's expectations.

Defenx traded well in the second half of 2016 and expects to report revenues for the year ended 31 December 2016 of approximately EUR7.3 million (2015: EUR4.5 million), representing 57% year-on-year growth on an organic basis and 63% year-on-year growth including the contribution from Memopal.

The second half revenue brings the full year into profitability, resulting in an increase in full year operating margins as compared with 2015.

First acquisition completed

On 1 August 2016, the Company successfully completed the acquisition of 95.2% of Memopal, a cloud backup and synchronisation business, for a maximum consideration of up to EUR2.3 million, including the assumption of outstanding loans from certain selling shareholders of Memopal.

The acquisition diversified the Group's product portfolio and added new channel partners, development and support staff. Integration is proceeding to plan and the acquisition is expected to be earnings enhancing after sales and cost synergies in 2017.

Broadened distribution

In addition to the eight new channel partners signed during 2016, Defenx is pleased to announce that its Mobile Security Suite is now available on the Café Bazaar Playstore, an Iranian Android App marketplace. Defenx is selling indirectly to end-users through an existing channel partner who is investing in the launch with a local advertising campaign. Café Bazaar receives approximately 20 million unique visits each week from users inside Iran and offers more than 25,000 downloadable apps.

Funding

In October 2016, Defenx completed a placing and subscription raising EUR1.5 million after expenses principally to accelerate software development. Together with new debt facilities of, in aggregate, EUR1.2 million, the Group is now appropriately funded for its current plans.

Outlook

Defenx is on track to launch new products, enter new markets and broaden its management team in 2017. The board of Defenx is confident that the Group will show continued growth in revenue and profit over the coming year in the ever-exciting mobile security software market.

Investor event

As announced on 10 January 2017, the Company is hosting an investor event this evening at Davy's at Woolgate Bar and Brasserie, 25 Basinghall Street, London EC2V 5HA from 18:00. The presentation for the event will be made available on the Company's website later today.

Investors and shareholders who wish to attend the event should register their interest here: www.eventbrite.co.uk/e/defenx-private-investor-evening-tickets-31028450932.

Andrea Stecconi, Chief Executive Officer of Defenx, commented:

"I am pleased that, in our first full year on AIM, we have delivered significant revenue growth by pursuing our strategy of growing the Defenx product portfolio and expanding our channel partner network. In addition, we successfully completed our first acquisition and raised EUR1.5 million to accelerate growth. Our B2B2C business model continues to enable us to capitalise profitably on increasing public awareness of mobile security and privacy threats. I would like to thank our investors for their continued support and look forward to reporting further progress and results in 2017."

Enquiries

 
 Defenx PLC 
  Andrea Stecconi - Chief Executive Officer 
  Philipp Prince - Chief Financial Officer     020 3769 0687 
 Strand Hanson Limited (Nominated and 
  Financial Adviser) 
  Richard Tulloch / Ritchie Balmer / 
  James Bellman                                020 7409 3494 
 WH Ireland (Joint-Broker) 
  Adrian Hadden / Nick Prowting                020 7220 1666 
 Beaufort Securities (Joint-Broker) 
  Jon Belliss                                  020 7382 8300 
 IFC Advisory (Financial PR and IR) 
  Tim Metcalfe / Graham Herring / Heather 
  Armstrong                                    020 3053 8671 
 

About Defenx

Founded in 2009, Defenx is a fast-growing and profitable security software company that offers a range of products for the mobile, PC and network security markets. Defenx security software is priced competitively, fully featured and efficient (reduced use of memory, processing capacity and therefore power).

A flexible marketing strategy, focused on white-label and profit-share arrangements with distributors, telecoms companies and hardware manufacturers, enables Defenx to compete with established industry incumbents. Since inception, Defenx has sold over 5.7 million security software licenses, primarily in Europe, the Middle East and Africa.

Defenx's global distribution partners currently include 3Italia, Seagate Technology, Türk Telecom and Western Digital, amongst others including telecoms operators, systems integrators and original equipment manufacturers. Defenx was admitted to trading on AIM on 3 December 2015 and acquired Memopal Srl in August 2016, which has allowed the Company to diversify its product portfolio and grow its customer base by adding proprietary cloud backup and synchronisation technology as well as new channel partners.

Website

investors.defenx.com

This information is provided by RNS

The company news service from the London Stock Exchange

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January 24, 2017 02:00 ET (07:00 GMT)