LONDON (Alliance News) - Cyber-security software firm Defenx PLC said Wednesday its expects 2018 revenue to be "significantly" lower than 2017, but it expects 2019 to see the business become cashflow positive after introduced initiatives deliver.
Executive Chairman Anthony Reeves - speaking at its annual general meeting in London later Wednesday - explained the firm now had the "platform to take the company forward and rebuild shareholder value" after "recent challenges."
Last October, Defenx saw it shares sink after it saw results hurt by the failure of several major contracts to begin on time.
Defenx is now looking to develop and implement its new strategic plan. This will see it switch to a software-as-a-service model to smaller customers combined with direct sales to large businesses.
"This strategy reflects the changing competitive landscape and growing demand for cloud-based services, together with feedback from existing and potential customers," Reeves explained.
Due to its difficulties, however, Defenx expects 2018 revenue to be "significantly" lower than reported in 2017. "However, as a result of the initiatives put in place," Reeves added, "the board believes the business will become cashflow positive during 2019."
In 2017, revenue stood at GBP2.9 million. This, itself, was sharply lower than the GBP7.1 million in revenue reported in 2016.
"We would like to reassure investors the board, with the support of its partner and largest shareholder, BV Tech, is committed to successfully executing its plans, returning the company to profitability and rebuilding value for shareholders," Reeves continued. "I would like to thank our investors for their patience and ongoing support."
In April 2017, Defenx entered into a strategic partnership with Italy-based software firm BV-Tech SpA which also saw it take a 25% stake in Defenx. BV has since issued Defenx with convertible and other lending facilities, it now has a 57% stake in Defenx.
Shares in Defenx were 13% higher at 7.90 pence on Wednesday.