(Alliance News) - Falanx Group Ltd on Friday said it is seeing good contract momentum in its two divisions "in terms of both quantum and duration" and is in discussions for a new loan under the UK government-backed coronavirus business interruption loan scheme.
Falanx shares climbed 13% at 1.35 pence each in London on Friday morning.
The Reading-based provider of cybersecurity and strategic intelligence services said its Cyber Security division has signed a further five new customers as well as an expansion to some existing contracts for Triarii, its enhanced cyber security monitoring service.
The order value across these contracts is over GBP700,000, of which around GBP400,000 will fall within this year's calendar year.
Triarii is the company's new managed detection and response service.
"The new customers span a range of sectors, namely charity, financial services, pharma, defence and IT - clearly illustrating the universal appeal of the Triarii offering," the company said.
The Assynt Strategic Intelligence division has seen a "solid profitable performance", in-line with the company's expectations, with a contract renewal for GBP1.2 million spread over the next three years.
"Further significant cyclical contract renewals from major corporations are expected to be received in the next few months, and it has a robust pipeline of opportunities from new and existing customers," Falanx said.
Chief Executive Mike Read said: "I am pleased with the continued contract momentum in both of our divisions. Triarii is gaining further traction and recent sales of, and interest in, our Microsoft Sentinel service offering, which was only launched last month, validates our chosen strategy of channel partners and using third party leading technologies to deliver our services. Customers in both divisions are increasing their commitments to us in terms of both quantum and duration and again, this underlies the value of our services to them."
Falanx additionally announced that it in discussions with a specialist lender for a UK government-backed coronavirus business interruption loan.
"This loan would enable the group to make earnings enhancing acquisitions to enhance its core Cyber division, as well as supporting organic growth," the company said.
To qualify for the loan, the company will have to carry out a capital reconstruction by "reducing the share premium account, to decrease the deficit on retained earnings". This will, in turn, facilitate Falanx in making distributions to its shareholders "at some point in the future".
By Greg Roxburgh; gregroxburgh@alliancenews.com
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