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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Falanx Group Limited | LSE:FLX | London | Ordinary Share | VGG3338A1075 | ORD NPV (DI) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.525 | 0.50 | 0.55 | 0.00 | 00:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Dec 2022 to Dec 2024
TIDMFLX
RNS Number : 9645I
Falanx Group Limited
08 December 2022
This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.
Falanx Group Limited
("Falanx", "Group" or "the Company")
Interim results
Falanx Group Limited (AIM: FLX), the AIM listed provider of cyber security services, is pleased to announce its interim results for the six months ended 30 September 2022 (the "Period").
Financial Highlights for six months to 30 September 2022
Hot Features
Premium
-- Orders for our core services were GBP1.89m (2021: GBP1.62m)
representing growth of 17%.
-- Core Service Revenues held at GBP1.8m (2021: GBP1.8m), despite
the exit from an onerous non-core contract worth GBP250k
per annum
-- Group adjusted EBITDA* loss GBP1.12m (2021: GBP0.39m) following
investment in sales expansion
-- Cash balances at 30 September 2022 GBP1.96m (2021: GBP0.51m),
normal working capital position
-- Loss per share 0.28p (2021: 0.14p) from continuing operations
-- Shareholders' funds GBP2.87m (2021: GBP2.0m)
Operational highlights
-- Strong growth in pipeline combined with an increased proportion
of MDR opportunities
-- Growth in both order volume and customer count in the period
-- Two new Tier 1 channel partners signed up and the revitalisation
of existing partners
-- Launch of two new entry-level defensive MRR services in
R-IR and CVS already delivering revenue.
-- Expansion of the EDR portfolio to include additional market-leading
software vendors
-- Ongoing development of f:CEL 2.0
Post Period Events
-- Final GBP345,000 of cash consideration from the sale of
Assynt in October 2021 was received early October 2022
-- Order growth of +44% for core orders in October and November
2022 compared to the same period in 2021
-- Gross margin improved to 42% (H1 FY23 36% and FY22 40%)
-- William Kilmer and Rick Flood joined the board as NED and
Executive directors respectively
* Adjusted EBITDA is a non-IFRS headline measure used by management to measure the Group's performance and is based on operating profit before the impact of financing costs, IFRS16, share based payment charges, depreciation, amortisation, impairment charges and highlighted items
Alex Hambro, (Non-executive Chairman) of Falanx, commented:
"In the nine weeks since I last wrote to you, I am pleased to announce further progress in sales with good order growth compared to last year. The drivers to spending on cyber security are ever increasing, and we look forward to growth in this year and next year. Our focus is to get to sustainable profitability within our existing resources and we are planning on achieving this by both recurring revenue growth and cost management. I am delighted to have welcomed William Kilmer to the Group who joined us as a NED in October and his wealth of experience in cyber security is already making an impact."
This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.
Enquiries:
Falanx Group Limited Via IFC Alex Hambro Chairman Mike Read CEO Ian Selby CFO WH Ireland Mike Coe/ Sarah Mather (Nomad) Joanna Hunt (Corporate Broking) + 44 (0) 207 220 1666 IFC Advisory Ltd Financial PR & IR Graham Herring / Zach Cohen +44 (0) 203 934 6630
About Falanx
Falanx Group Limited is a cyber security services provider, offering enterprise-class offensive and defensive security solutions to Small and Medium-sized Enterprises (SMEs). For further information visit: www.falanxcyber.com
Our strapline is Attack. Defend. Protect.
Attack
These are our Offensive Services and are primarily centred around Penetration Testing / ethical hacking ("PT"). Our comprehensive portfolio of PT services covers a wide range of skills and techniques which we use to emulate potential attackers looking for vulnerabilities in our client's infrastructure.
Defend
Our Defensive (managed) services are provided by our Security Operations Centre ("SOC") based in Reading. The SOC operates a 24/7/365 service, continually watching our customers' IT estates, looking for unusual activity which may be a sign of a cyber-attack or data theft.
Protect
Through both our Offensive and Defensive services, we help our customers to protect themselves against cyber-attacks.
Business Review
In the Period to September 2022, orders for our core services were GBP1.89m (2021: GBP1.62m), representing growth of 17%. The majority of this growth came from increased sales of our defensive services, all of which generate Monthly Recurring Revenues ("MRR"). As outlined previously, the growth of our MRR revenues is key to our strategy. Total orders for these MRR services grew by over 100% in the Period.
During the Period, we exited a legacy consulting contract (which had the potential to become onerous) at an agreed break point and the growth in MRR sales has more than offset this revenue reduction with higher quality revenues and better long-term margins. Overall, across our core services, we have transacted with a greater number of customers than in the previous year.
Our target market is primarily SMEs and we focus our MRR service offerings on organisations which employ between 50 and 1,000 staff. Cyber security threats are ever growing, and against an increasingly difficult social and economic backdrop, criminal activity is increasing. Cyber security insurance providers are now significantly increasing premiums as well as applying increased conditionality, which can include mandating use of cyber security services, as a condition of cover. The need to protect a business' assets against cyber-attacks is even more imperative now than ever before.
Consequently, we have evolved our service offerings to best address our target market and protect those SMEs from cyber-attack, whatever their insured status may be. To best address this, we have progressively introduced additional defensive MRR services with lower entry price points in addition to our existing Managed Detection and Response (MDR) and Managed-Endpoint Detection and Response (M-EDR) services (both of which support multiple leading enterprise-grade security vendor solutions). Retained Incident Response ("R-IR") and Continuous Vulnerability Scanning ("CVS") were introduced in the summer of 2022, and we are seeing that customers are increasingly understanding the need for both services - a rapid response service in the case of a breach (R-IR) and continually scanning networks with CVS throughout the year as well as the Pen Tests run annually. Consequently, we have a growing pipeline of opportunities in these service lines since their launch and this has already translated into sales to six customers - most of which are existing Pen Test customers. As customers mature and evolve, full MDR will become more relevant to their organisation.
In addition, we have expanded our network of channel partners in the last few months. Some of these are starting to generate significant interest which has already translated into sales. We are focusing on a limited number of Tier 1 channel partners where we invest time and resources and are selecting them based on their experience, reputation, and their addressable market.
Post Period Update
Following on from the increase in MRR orders in the six months to 30 September 2022, combined with our rapidly growing pipeline of MRR opportunities, we have restructured our sales team to maximise our ability to achieve our MRR sales targets in the coming months. The sales team is now a single organisation split into two focused sales groups - PenTest (Attack) and MRR (Defend). They target new customers as well as cross selling into our base which is now has over 400 clients. This allows increased dedicated and experienced resources to focus on the more complex (and arguably more valuable) sales of MRR services, whilst allowing the penetration testing services team to focus on their own strong pipeline of business which typically has a shorter lead time. Early results are promising, with aggregate orders for core services across October and November 2022 growing by 44% compared to the same period in 2021.
Outside of our pipeline, we have several large-scale opportunities advancing with major global technology providers (both new and existing relationships) to partner as part of their Cyber go-to-market plans. As ever these opportunities could be transformational for Falanx, and we look forward to updating on these as they progress.
Financial Performance
Total revenues were GBP1.8m (2021: GBP1.8m). Within this, monthly recurring revenues from monitoring services increased by 29% to GBP0.49m (2021: GBP0.38m) offsetting a small reduction in professional services, the majority of which came from our exit from a non-core legacy contract referenced previously.
Gross margin decreased to 36% (2021: 40%) due to expansion costs and some price increases. Rectification actions were carried out, and in recent months gross margins have recovered back to ahead of FY22 levels. The Group expects to be able to manage these cost factors to protect gross margins going forward. Underlying operating costs were GBP1.76m (2021: GBP1.10m) with the increase arising from investment in sales and marketing expansion. Consequently, the adjusted EBITDA loss was GBP1.1m (2021: GBP0.39m).
Depreciation and amortisation charges were GBP0.22m (2021: GBP0.25m), with the vast majority being the routine amortisation (straight line basis over a 10 year period) of the customer base acquired in March 2018, as well as property lease costs related to IFRS16.
Interest payable was GBP0.17m (2021: GBP0.04m) and was mainly comprised of interest (including amortised costs) on the Boost loan of GBP2.5m drawn down in October 2021 as the IFRS 16 element lease payments for the Reading office.
The loss from continuing operations was to GBP1.48m (2021: GBP0.71m). The loss per share (both on a basic and fully diluted basis) from continuing operations was 0.28p (2021: 0.13p).
Consolidated Statements of Financial Position & Cash Flow
Intangible assets were GBP3.1m (2021: GBP3.5m) and principally comprised of the acquired customers base and associated goodwill. The GBP0.13m goodwill arising from the acquisition of Securestorm Limited was fully impaired in the year ended 31 March 2022.
Trade and other debtors stood at GBP1.21m (2021: GBP0.93m) with the increase being due to the final GBP0.345m of the cash consideration from the disposal of Assynt in October 2021 (which was held in escrow for 12 months) until it was paid in early October 2022. Cash receipts were strong, with no incidence of bad debt being recorded, and debtor days stood at 40 (2021: 42). Trade and other payables reduced to GBP0.62m (2021: GBP1.29m) due to the repayment of HMRC COVID-19 backlog which took place in H2 FY22. Deferred incomes increased to GBP0.53m (2021: GBP0.39m) due to greater business volumes and overall, the Group had a normal working capital profile at 30 September 2022.
Net cash outflow from operations was GBP1.30m (2021: GBP0.88m) and included the final GBP0.07m payment of the HMRC COVID-19 backlog. Cash balances as at 30 September 2022 were GBP1.96m (2021: GBP0.51m) and overall shareholders' funds were GBP2.87m (2021: GBP2.0m).
Events after the reporting Period
On 7 October 2022 the final GBP0.35 million of the Assynt disposal cash consideration held escrow account against was released to the Group.
FALANX GROUP LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS PERIODED 30 SEPTEMBER 2022
6 Months 6 Months Year to
to to
30 Sep 2022 30 Sep 31 Mar
2021 2022
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
Revenue 1,788,239 1,794,861 3,542,308
Cost of sales (1,140,719) (1,075,941) (2,099,732)
---------------------------------------------- ------------ ------------ ------------
Gross profit 647,520 718,920 1,442,576
Administrative expenses (1,960,068) (1,390,355) (3,220,878)
Operating loss (1,321,048) (671,435) (1,778,302)
Analysis of operating loss
Operating loss (1,312,548) (671,435) (1,778,302)
Share option expense 8,500 20,000 17,839
Depreciation and amortisation 218,057 241,618 465,417
Impairment of goodwill - - 130,347
Highlighted costs / (income) (23,652) 24,083 (107,285)
Adjusted EBITDA loss (1,118,143) (385,734) (1,271,984)
Finance income 741 - 104
Finance expense (167,581) (36,071) (201,568)
---------------------------------------------- ------------ ------------ ------------
Net finance expense (166,840) (36,071) (201,464)
Loss before income tax (1,487,888) (707,506) (1,979,766)
Income tax credit - - 8,479
---------------------------------------------- ------------ ------------ ------------
Loss for the period from continuing
operations (1,487,888) (707,506) (1,971,287)
Gain / (Loss) from discontinued operations,
net of tax - (38,350) 3,455,869
---------------------------------------------- ------------ ------------ ------------
Loss for the period (1,487,888) (745,856) 1,484,582
---------------------------------------------- ------------ ------------ ------------
Other comprehensive income:
Re-translation of foreign subsidiaries - (1,432) -
Exchange differences recycled to
the income statement on disposal
of business - - 109,030
- (1,432) 109,030
Total comprehensive loss for the
period (1,487,888) (747,288) 1,593,612
---------------------------------------------- ------------ ------------ ------------
Loss per share from continuing operations
--------------------------------------------- ------------ ------------ ------------
(0.13) (0.37)
Basic loss per share (0.28) p p p
(0.13) (0.37)
Diluted loss per share (0.28) p p p
---------------------------------------------- ------------ ------------ ------------
Loss per share from continuing and discontinued
operations
------------------------------------------------------------ ------------ ------------
(0.14)
Basic loss per share (0.28) p p 0.28 p
(0.14)
Diluted loss per share (0.28) p p 0.28 p
All items are continuing save where stated otherwise.
FALANX GROUP LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2022
6 Months 6 Months Year to
to to
30 Sep 30 Sep 2021 31 Mar 2022
2022
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
Assets
Non-current assets
Property, plant & equipment 105,505 125,679 104,352
Intangible assets 3,124,010 3,531,661 3,262,662
Right of use asset 141,768 308,781 254,290
3,371,283 3,966,121 3,621,304
----------------------------------------- ----------- ----------- -----------
Current assets
Trade and other receivables 1,215,741 930,628 1,192,220
Cash and cash equivalents 1,955,488 512,972 3,483,063
3,171,229 1,443,600 4,675,283
----------------------------------------- ----------- ----------- -----------
Assets in a disposal group classified
as held for sale - 190,214 -
----------------------------------------- ----------- ----------- -----------
Total assets 6,542,512 5,599,935 8,296,587
----------------------------------------- ----------- ----------- -----------
Equity
Capital and reserves attributable to
equity holders of the Company
Share premium account 4,043,194 4,039,125 4,043,194
Translation reserve - (109,209) -
Share based payment reserve 711,651 767,243 703,151
2022 liabilities reserve 1,000,000 1,000,000 1,000,000
Retained earnings (2,885,364) (3,689,845) (1,397,476)
Total equity 2,869,481 2,007,314 4,348,869
----------------------------------------- ----------- ----------- -----------
Liabilities
Non-current liabilities
Deferred tax liability - 8,479 -
Lease liability 93,641 203,081 149,691
Borrowings 1,840,369 968,830 2,094,739
Other payables - 5,532 -
----------------------------------------- ----------- ----------- -----------
1,934,010 1,185,922 2,244,430
Current liabilities
Trade and other payables 618,771 1,286,839 804,908
Contract liabilities 529,209 386,677 529,496
Lease liability 54,833 99,926 103,182
Borrowings 536,208 9,594 265,702
1,739,021 1,783,036 1,703,288
----------------------------------------- ----------- ----------- ----------- Liabilities directly associated with assets in the disposal group classified as held for sale - 623,663 - ----------------------------------------- ----------- ----------- ----------- Total liabilities 3,673,031 3,592,620 3,947,718 ----------------------------------------- ----------- ----------- ----------- Total equity and liabilities 6,542,512 5,599,935 8,296,587 ----------------------------------------- ----------- ----------- -----------
FALANX GROUP LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Accumulated Translation Share 2022
based
capital losses Reserve payment Liabilities Total
reserve reserve
GBP GBP GBP GBP GBP
---------------------------- ---------- ------------ ------------ --------- ------------ ------------
Balance at 1 April
2021 4,033,161 (2,943,989) (107,777) 747,243 1,000,000 2,728,638
Profit for the year - 1,484,582 - - - 1,484,582
Re-translation of foreign
subsidiaries - - (1,253) - - (1,253)
Exchange differences
recycled to the income
statement on disposal
of business - - 109,030 - - 109,030
Transactions with
owners:
Issue of share capital 10,033 - - - - 10,033
Share based payment
charge - - - 17,839 - 17,839
Forfeited share options
reversed through reserves - 61,931 - (61,931) - -
Balance at 31 March
2022 4,043,194 (1,397,476) - 703,151 1,000,000 4,348,869
---------------------------- ---------- ------------ ------------ --------- ------------ ------------
Loss for the year - (1,487,888) - - - (1,487,888)
Transactions with
owners:
Share based payment
charge - - - 8,500 - 8,500
Balance as at 30 September
2022 4,043,194 (2,885,364) - 711,651 1,000,000 2,869,481
---------------------------- ---------- ------------ ------------ --------- ------------ ------------
FALANX GROUP LIMITED
CONSOLIDATED CASH FLOW STATEMENT FOR THE PERIODED 30 SEPTEMBER 2022
6 Months 6 Months Year to
to to
30 Sep 30 Sep 2021 31 Mar
2022 2022
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
Cash flows from operating activities
Profit/(Loss) before tax (1,487,888) (746,906) 1,475,052
Adjustments for:
Depreciation 30,190 33,608 64,275
Amortisation of intangibles 138,652 166,766 305,538
Amortisation of right of use assets 49,215 54,491 108,982
Impairment of goodwill - - 130,347
Share based payment 8,500 20,000 17,839
Loss on disposal of equipment / fixtures - 77 -
and fittings
Gain on disposal of subsidiaries - - (3,498,102)
Amortisation of borrowing cost 20,964 2,361 23,659
Net finance expense recognised in profit
or loss 145,876 36,312 178,081
(1,094,491) (433,291) (1,194,329)
Changes in working capital:
Increase/(decrease) in trade and other
receivables (23,520) (39,760) (290,025)
Decrease in trade and other payables (186,425) (403,510) (749,745)
--------------------------------------------- ------------ ------------ ------------
Cash generated from / used in operations (1,304,436) (876,561) (2,234,099)
Interest paid (497) (11,003) (9,745)
Tax paid - 1,050 -
--------------------------------------------- ------------ ------------ ------------
Net cash used in operating activities (1,304,933) (886,514) (2,243,844)
--------------------------------------------- ------------ ------------ ------------
Cash flows from investing activities
Interest received 741 - 104
Acquisition of property, plant, and
equipment (31,344) (3,987) (13,315)
Proceeds on disposal of subsidiaries,
net of cash disposed - - 3,163,674
Net cash used in investing activities (30,603) (3,987) 3,150,463
--------------------------------------------- ------------ ------------ ------------
Cash flows from financing activities
Repayment under finance lease (41,093) (47,133) (95.998)
Interest paid on lease liabilities (8,619) (11,923) (22,114)
Proceeds from borrowings - 1,000,000 2,500,000
Repayment of borrowings (4,827) (3,104) (7,906)
Loan transaction costs - (70,834) (205,347)
Interest paid on borrowing (137,500) (13,386) (146,291)
Proceeds from issue of shares - 5,964 10,033
Net cash used in / generated from financing
activities (192,039) 859,584 2,023,377
--------------------------------------------- ------------ ------------ ------------
Decrease/(increase) in cash equivalents (1,527,575) (30,917) 2,938,996
Cash and cash equivalents at beginning
of the period 3,483,063 545,321 545,321
Foreign exchange gains on cash and
cash equivalents - (1,432) (1,254)
--------------------------------------------- ------------ ------------ ------------
Cash and cash equivalents at end of
the period 1,955,488 512,972 3,483,063
--------------------------------------------- ------------ ------------ ------------
FALANX GROUP LIMITED
NOTES TO INTERIM FINANCIAL STATEMENTS FOR THE PERIODED 30 SEPTEMBER 2022
1. General information
Falanx Group Limited (the "Company" or "Falanx") and its subsidiaries (together the "Group") operate in the cyber security services market. The Company is a public limited company which is listed on the AIM Market of the London Stock Exchange and is incorporated and domiciled in the British Virgin Islands. The address of its registered office is PO Box 173, Kingston Chambers, Road Town, Tortola, British Virgin Islands. The UK registered office The Blade, Abbey Square, Reading, RG1 3BE.
2. Basis of preparation
These interim statements have been prepared on a basis consistent with International Financial Reporting Standards (IFRS). They do not contain all the information required for full financial statements and should be read in conjunction with the consolidated financial statements of the Group as at and for the year ended 31 March 2022. These interim financial statements do not constitute statutory accounts within the meaning of the Companies Act.
The interim financial information has not been reviewed nor audited by the auditors. The interim financial information was approved by the Board of Directors on 7 December 2022. The information for the year ended 31 March 2022 is extracted from the statutory financial statements for that year which have been reported on by the Group's auditors and delivered to the Registrar of Companies. The audit report was unqualified.
The accounting policies applied by the Group in these interim financial statements are the same as those applied by the Group in its consolidated financial statements for the year ended and as at 31 March 2022. The interim report is the responsibility of, and has been, approved by the Directors. The Directors are responsible for preparing the interim financial statements in accordance with the AIM rules for Companies.
Going Concern
These interim results have been prepared on a going concern basis, which notwithstanding the loss incurred for the six-month period to 30 September 2022.
The Group made an adjusted EBITDA loss (which most closely correlates its cash performance over time) from continuing operations in six months to 30 September 2022 of GBP1.1 m (2021: GBP0.4m). This was due to the planned significant investment in sales and marketing expansion which has consequently built a strong pipeline of prospective business, and which is now beginning to convert into contract wins of monitoring contracts with their predictable recurring revenue and cash profiles. This provides the board with further confidence in its projections.
Cash balances on 30 September stood at GBP1.95m (2021: GBP0.51m) and these are estimated by the Board as sufficient to achieve break even and cash generation on its organic plans. The Group received the final GBP0.345m of cash consideration in early October 2022, which has been held in escrow since the disposal of Assynt in October 2021. The Group has a normal working capital position and furthermore HMRC are fully in terms and are being paid on the usual periodic basis.
GBP 1.5m of the cash balance is reserved for use on acquisitions and investments, but under the loan agreement, this can be used for other reasonable business purposes, with BOOST&Co's consent. The Group is focused on organic growth as opposed to acquisitive growth, and therefore believes that these funds can be better deployed to support this strategy. As part of its routine detailed forecasting processes (which includes stress testing), it is possible that the Group may need to use some of these funds to support continued investment in growth. All tests show that the Group can move into profitability within its existing resources, whilst maintaining a normal working capital profile and repayment schedule.
Should the Group significantly under achieve against its revenue and growth targets, the Board routinely prepares contingency plans to deal with lower performance and any ensuing shortfall in working capital. These typically entail cost reductions mainly around overheads and as well as in discretionary expansion expenditure. Other measures could involve the disposal of assets. Furthermore, the Group could seek, as in previous years, the support of investors to raise additional debt or equity. Based upon the above, the Directors have a reasonable expectation that the Group has adequate working capital for the twelve months following the date of signing these interim results. For this reason, they continue to adopt the going concern basis in preparing these interim results.
In accordance with IFRS 5 'Non-current assets held for sale and discontinued operations', the net results of Assynt Group Limited and subsidiaries ("Assynt") which was disposed of on 6 October 2021 are presented within discontinued operations in the consolidated statement of comprehensive income and the assets and liabilities of these operations are presented separately on the consolidated statement of financial position.
3. Critical accounting estimates and judgements
The preparation of financial information in accordance with generally accepted accounting practice, in the case of the Group being IFRS as adopted by the European Union, requires the Directors to make estimates and judgements that affect the reported amount of assets, liabilities, income and expenditure and the disclosures made in the financial statements. Such estimates and judgements must be continually evaluated based on historical experience and other factors, including expectations of future events. The significant judgements made by management in applying the Group's accounting policies were the same as those applied in the last annual financial statements for the year ended 31 March 2022.
4. Segmental reporting
The Directors consider that the Group's internal financial reporting is organised along product and service lines and, therefore, segmental information has been presented about business segments. The segmental analysis of the Group's business was derived from its principal activities as set out below. The information below also comprises the disclosures required by IFRS 8 in respect of products and services as the Directors consider that the products and services sold by the disclosed segments are essentially similar and, therefore, no additional disclosure in respect of products and services is required. The other segment below and overleaf is made up of the parent company's administrative operation.
Reportable segments
The reportable segment results for the period ended 30 September 2022 are as follows:
Continuing
operations
GBP
-------------------------------------- ------------
Professional services 1 ,302,749
Monitoring managed services 4 85,490
-------------------------------------- ------------
Revenues from external customers 1 ,788,239
-------------------------------------- ------------
Gross margin 647,520
-------------------------------------- ------------
Segment reported EBITDA (1,094,491)
Highlighted income (23,652)
Segment adjusted EBITDA (1,118,143)
-------------------------------------- ------------
Finance costs - net (166,840)
Depreciation and amortisation (218,057)
Share option expense ( 8,500)
Segment profit/(loss) for the period (1,487,888)
-------------------------------------- ------------
The reportable segment results for the period ended 30 September 2021 were as follows:
Continuing Discontinued Total
operations operations
GBP GBP GBP
-------------------------------------- ------------ ------------- ----------
Assynt report - 972,633 972,633
Professional services 1,407,699 21,102 1,428,801
Monitoring managed services 387,193 - 387,193
-------------------------------------- ------------ ------------- ----------
Revenues from external customers 1,794,862 993,735 2,788,597
-------------------------------------- ------------ ------------- ----------
Gross margin 718,920 224,698 943,618
-------------------------------------- ------------ ------------- ----------
Segment Reported EBITDA (409,817) (25,912) (435,729)
Highlighted Costs 24,083 2,181 26,264
Segment adjusted EBITDA (385,734) (23,731) (409,465)
-------------------------------------- ------------ ------------- ----------
Finance costs - net (36,071) (241) (36,312)
Depreciation and amortisation (241,618) (13,247) (254,865)
Share option expense (20,000) - (20,000)
Segment profit/(loss) for the period (707,506) (39,400) (749,906)
-------------------------------------- ------------ ------------- ----------
The reportable segment results for the year ended 31 March 2022 are as follows:
Continuing Discontinued Total
GBP GBP GBP
Professional services 2,683,204 21,102 2,704,306
Monitoring managed services 859,104 - 859,104
Assynt report & embedded analysts - 1,005,191 1,005,191
Revenues from external customers 3,542,308 1,026,293 4,568,601
------------------------------------------- ------------ ------------- --------------
Gross margin 1,442,576 224,270 1,666,846
Cyber operating expenses (1,598,143) - (1,598,143)
Corporate operating expenses (1,009,132) - (1,009,132)
Segment reported EBITDA (1,164,699) (29,664) (1,194,363)
Highlighted income (107,285) - (107,285)
Segment adjusted EBITDA (1,271,984) (29,664) (1,301,648)
------------------------------------------- ------------ ------------- --------------
Finance expense-net (201,464) (241) (201,705)
Depreciation and amortisation (465,417) (13,378) (478,795)
Impairment of goodwill (130,347) - (130,347)
Share option expense (17,839) - (17,839)
Profit on sale of discontinued operations - 3,498,102 3,498,102
Segment loss before tax for the year (1,979,766) 3,454,819 1,475,053
------------------------------------------- ------------ ------------- --------------
Segment assets and liabilities as at 30 September 2022 and capital expenditure for the period then ended are as follows:
Continuing
operations
GBP
---------------------------------------- ------------
Contract assets 47,448
Other assets 6 ,495,064
Contract liabilities (deferred income) 529,209
Other liabilities 3 ,143,822
Capital expenditure - tangible 31,344
---------------------------------------- ------------
Segment assets and liabilities as at 30 September 2021 and capital expenditure for the period then ended are as follows:
Continuing Discontinued Total
operations operations
GBP GBP GBP
---------------------------------------- ------------ ------------- ----------
Contract assets 2,688 - 2,688
Other assets 5,346,712 250,535 5,597,247
Contract liabilities (deferred income) 386,677 442,927 829,604
Other liabilities 2,582,280 180,736 2,763,016
Capital expenditure - tangible 3,987 - 3,987
---------------------------------------- ------------ ------------- ----------
Segment assets and liabilities as at 31 March 2022 and capital expenditure for the year then ended are as follows:
Continuing
operations
GBP
---------------------------------------- ------------
Contract assets 27,100
Other assets 8,296,487
Contract liabilities (deferred income) 529,496
Other liabilities 3,418,222
Capital expenditure - Tangible 13,315
---------------------------------------- ------------
5. Earnings per share
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the year.
6 Months 6 Months Year to
to to
30 Sep 30 Sep 31 Mar
2022 2021 2022
(Unaudited) (Unaudited) (Audited)
Loss attributable to equity holders
of the company (GBP) (1,487,888) (745,846) 1,484,582
Weighted average number of ordinary
shares in issue 526,421,185 526,001,185 526,181,678
Basic loss per share (pence per share) (0.28) (0.14) 0.28
---------------------------------------- ------------ ------------ ------------
As at 30 September 2022, the potentially dilutive ordinary shares were anti-dilutive because the Group was loss-making.
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END
IR QDLFBLLLXFBK
(END) Dow Jones Newswires
December 08, 2022 02:00 ET (07:00 GMT)
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