(Alliance News) - Defenx PLC said Monday its loss narrowed substantially in the first half of 2019, as revenue more than doubled on a new distribution agreement signed in April.
For the six months to the end of June, the cyber-security software company reported a pretax loss of EUR76,000, narrowed from EUR1.6 million the year before. This was on revenue that more than doubled to EUR1.5 million from EUR701,000.
Revenue growth came from a distribution agreement signed with majority shareholder BV Tech Spa, which give the shareholder the the sole right to sell Defenx's cyber security products to "bodies within the Italian defence, space, national security or critical infrastructures sector" until the end of 2023.
For it BV Tech paid EUR1.0 million for the right-to-sell as part of the agreement, which was recognised in the first half.
Looking ahead, as the revenue uplift is from an exceptional payment, Defenx said that sales are unlikely to reach the level of the first half, with a further operating loss likely to come up in the second half of 2019.
"I and BV Tech remain fully supportive of Defenx, and I believe that the company has made significant progress in recent months, particularly with its next generation products. I look forward to providing further updates as matters develop," said Deputy Chair Raffaele Boccardo.
Shares in Defenx were untraded on Tuesday, last quoted at 3.34 pence.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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