LONDON (Alliance News) - Kape Technologies PLC said Monday it swung to an interim profit despite revenue falling as costs dropped sharply.
For the six months ended June, the cyber security firm swung to a USD1.7 million pretax profit from a USD949,000 loss the year prior. This was despite revenue falling 7.6% to USD27.8 million from USD30.1 million the year before.
Profit performance was helped by a sharp fall in selling & administrative costs to USD15.4 million from USD21.1 million the year prior. All told, operating costs dropped to USD22.9 million from USD29.2 million the year before.
"I am delighted to report excellent progress was achieved in the first half of 2018, with a significant rise in subscriptions sales as well as growth in adjusted EBITDA," Kape Chief Executive Officer Ido Erlichman said.
Earnings before interest, taxes, depreciation and amortisation rose 45% to USD4.3 million from USD2.9 million the year prior.
"Post the period-end, in July 2018, we acquired Intego, a highly complementary business that delivers against all our key growth priorities", Erlichman added.
In July, Kape acquired Netural Holdings Ltd - trading as Intego - for USD16.0 million.
"We expect the momentum achieved in the first half to continue into the second half of the year, as we integrate Intego and begin to realise the synergies this acquisition presents, as well as continue to execute on organic growth initiatives and evaluating select acquisition opportunities," Erlichman continued. "Kape is now in an excellent position to become a leading provider of online security and privacy in the growing consumer cybersecurity market."
Shares in Kape were 1.4% lower at 129.20 pence on Monday.
