LONDON (Alliance News) - Mobile security software firm Defenx PLC on Monday said it swung to a loss in the first half of 2016 due to the front-loading of marketing spend which offset a sharp rise in revenue.
Defenx, which floated in London in December 2015, said it made a pretax loss of EUR450,181 in the first half, swung from a EUR117,307 profit a year prior. The company said it spent EUR1.5 million on marketing in the first half, compared to EUR670,000 a year before, as it ramped-up activity ahead of an seasonal increase in sales in the second half.
Revenue, however, grew 73% year-on-year in the first half to EUR2.3 million from EUR1.3 million, driven by new product launches and channel partner contract wins. Average revenue per user increased 10% in the half, and the group said its pipeline for new product launches in the second half looks strong, with a series of new channel partners having been signed up.
Trading conditions remain positive, Defenx said, and it remains confident it will deliver 2016 results in line with market expectations.
Shares in Defenx were untraded on Monday morning, having last traded at 103.00 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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