News blog
Falanx Group Ltd
- BY: Andrew Hore |
- POSTED: 01/01/2015 |
Security and cyber crime services provider Falanx Group Ltd fell into loss last year but it is still to benefit from its investment in its cyber division.
In the year to September 2014, the timing of contracts meant that revenues slumped from £2.18m to £971,000 and this meant that a £3,000 profit became a £709,000 loss. The cash outflow from operations was £436,000. There was £1.32m in the bank at the end of September 2014, helped by a reduction in working capital and £2.03m raised at 18p a share last April.
The intelligence division, which provides political and security risk assessment, reported flat revenues of £815,000 and profitability improved but resilience division revenues slumped from £1.36m to £156,000 due to a delay in the next phase of a Middle East consultancy agreement. The next phase should be larger than the previous one and should begin before the second half of this year.
The cyber division did not generate any revenues but there was a loss of £269,000. Sony’s problems show how this type of service is needed by companies and governments. A monitoring centre has been set up and it uses Assuria’s protective monitoring technology. Falanx has also secured other partners which have opened up markets including the UK government.
The monitoring centre has started to generate revenues. The model is based on monthly recurring revenues with the cost dependent on the level of service chosen.
Falanx has also won a two-year contract to supply managed cyber defence services to CERT-UK, the UK’s Computer Emergency Response Team.
This means that the cyber division should move into profit in the middle of 2015 and make a more significant contribution next year.
At 39p a share, Falanx is valued at £20.4m.
AIM Journal December 2014 available.
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