 sunk nearly 15 percent on Monday, despite seeing a record revenue increase in the year to March 2017.){kind=link}
Shares in cyber defence and intelligence service provider Falanx Group (LON:FLX) sunk nearly 15 percent on Monday, despite seeing a record revenue increase in the year to March 2017.
The company’s pretax loss narrowed to £1.7 million from £2.7 million the previous year, benefitting from a significant fall in administrative expenses. Revenue increased to a “record” £2.7 million from £1.8 million the previous year, boosted by an increase in demand for cyber security. Revenue from its intelligence division grew 13 percent over the period to £1.8 million.
Market conditions in the cyber defence sector remained ‘robust’ and Falanx remains optimistic about future performance. Non-Executive Chairman Mike Read said of the results:
“The market conditions for growth of Cyber Security and Intelligence for the new year are extremely favourable. The Board anticipates Falanx Group will reach breakeven within twelve months, with another period of client acquisition and robust, organic growth. Cyber and political risks continue to dominate our headlines and are highly likely to grow, placing security issues at the forefront of people’s minds.”
Falanx’s acquisition of Advanced Security Consulting provided a boost for the company, alongside February’s pilot launch of proprietary monitoring platform MidGARD.
Chief Executive Stuart Bladen, commented: “Falanx has experienced robust revenue increases across all lines of business driven by geopolitical instability, rising cyber-crime, and increasing regulatory requirements such as GDPR, PCI-DSS and the Cyber Essentials programme.”
Despite the positive results shares in Falanx fell on Monday, down 14.58 percent at 6.62 (1138GMT).