LONDON (Alliance News) - Cyber security software company Falanx Group Ltd on Monday said its pretax loss widened in the year to the end of March as it restructured its operations, but said the refocusing of its energies is producing encouraging results so far in the current year.
Falanx said its made a pretax loss of GBP2.7 million in the financial year to March 31, widened from a GBP2.2 million loss the year prior. Revenue declined to GBP1.8 million from GBP1.9 million.
During the recent financial year, the company said it refocused its strategy towards cyber security services, which resulted in its Falanx Resilience physical security and training projects arm being closed down as it became non-core.
Since the turn of the financial year, Falanx agreed to acquire cyber security services firm Advanced Security Consulting Ltd, which has now been integrated into the wider business.
Falanx said revenue so far in its current financial year is growing against the prior year, with growth recurring revenue and a reduced cash burn leaving it in a stronger financial position.
"We recognised the need to dramatically increase client awareness of the value of managed cyber defence services. We also recognised the signs of a relatively young cyber security market where education and client-side advice were more effective than traditional sales strategies," said Chief Executive John Blamire.
"With a reorganised group, increased revenue and reduced costs, the board is very encouraged by the group's prospects for the coming year and expects to report very significant growth in cyber defence revenue for the first half of financial year 2016/17," he added.
Shares in Falanx were untraded on Monday, having last traded at 4.00 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.