LONDON (Alliance News) - Security and risk management consultancy Falanx Group Ltd Tuesday said it made a pretax profit in its first results since it listed on the alternative investment market in June.
Falanx shares were Tuesday quoted up 11.4% at 14.20 pence.
Falanx, which counts blue chips and governmental bodies amongst its clients, said it made a GBP35,150 pretax profit for the six months to September, compared to a GBP73,774 pretax loss in the period to March 31.
The company managed to make approximately GBP2.2 million in revenues, which were largely balanced out by costs and administration expenses.
Falanx said its March acquisition of political and security risk intelligence provider Stirling Assynt provided it with the entirety of its revenue, after signing a GBP2.5 million three-year deal with QinetiQ in May to restructure and retrain a major Middle East government department. Falanx said turnover from the contract is on track, with and proposals for year two of the contract starting in 2014 already complete. Falanx expects the value of work in the second year to be at least twice that of the current year's expected revenues of GBP2.5 million, though it is also likely to involve a significant increase in the number of consultants deployed.
"The restructuring of the business has gone well and I am pleased with the people we have appointed. The acquisitions selected are cash generative and complementary to the existing operations and it is our intention to grow each business by introducing them to new territories and markets," Karl Barclay, chairman, said in a statement.
"As a profitable, high-end security and intelligence provider, led by a strong team of former military, government and corporate security specialists, Falanx is well placed to capitalise on the projected growth in the target markets," Barclay added.
Meanwhile, Falanx Technology's GBP18.5 million bid is expected to progress to a formal signed contract within the next few months with initial revenue expected in the first quarter of 2014. Falanx Resilience is expected to sign a GBP2 million contract to provide building consultancy and training for a major government department in a North African country, as part of a sub-contract with a "major US software firm."
Falanx was admitted to AIM on June 20. Its IPO raised GBP595,000 through a placing of 5.0 million shares, representing about 13.24% of the company's share capital. On September 19 it raised a further GBP225,000 through a subscription of 1.9 million shares.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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