(Alliance News) - Falanx Group Ltd on Wednesday said its performance in its most recently ended financial year was hurt by delays associated with coronavirus pandemic.
The provider of cyber security and strategic intelligence services said revenue totalled GBP5.2 million for the year ended March 31, down from GBP5.8 million posted the year before, due to Covid-19 delays in the first half.
Despite that, Falanx said it expects to report a reduced loss at an adjusted earnings before interest, tax, depreciation and amortization level for the year due to tight cost control.
Going forward, Falanx said trading for the first four months of the current financial year has been encouraging and is in line with management's expectations.
In addition, the company said it has signed a five-year growth loan facility with Boost & Co. Falanx said the initial GBP1 million loan secured over its assets is expected to increase to GBP2.5 million to fund acquisitions and investment programmes.
The company said the proceeds of the loan will enable it to make earnings enhancing acquisitions to strengthen its core Cyber division, as well as support its overall organic growth plans.
"Falanx's innovative services, solid customer relationships, growing order book and market alignment combined with a strong management team put the business in a positive position to capitalise on its growth opportunities in the near future," said Boost & Co Managing Director Joanna Scott.
Falanx shares were trading 4.8% lower in London on Wednesday at 1.00 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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