Falanx secures 'significant' new orders

(Sharecast News) - Cybersecurity provider Falanx Group experienced strong trading with roughly ?1m of "significant" new orders between December and mid-February in its cyber division.
Falanx said the wins were significant as they were in addition to the usual run rate of the cyber business and were the result of a combination of new high-profile customer wins and increased incremental spend by existing customers.

The AIM-listed group also stated it had been successful in cross-selling new services to existing penetration test or manage, detect and respond customers.

"These new customer wins (the majority of the revenue for which will be recognised in the next financial year), combined with much stronger recurring revenues in the Assynt strategic intelligence division, result in the board expecting to deliver revenues of circa ?5.9m for the year ended 31 March 2020 - representing growth of 13% on last year," said Falanx.

As far as the Covid-19 outbreak was concerned, Falanx acknowledged that the crisis had begun to "significantly affect the global economy" and said, in line with government guidance, all employees were now working remotely.

"This has been made possible by our technical infrastructure in addition to our processes and protocols and has resulted in zero interruption to our service provision. We are, therefore, fully able to service our clients in this period with no loss of quality or service," the company said.

Falanx also said it had already implemented or was in the process of implementing, certain measures designed to strengthen its balance sheet and expected cash performance over the next few months.

"Overall, the Company currently expects to be able to operate effectively within its existing resources and will closely monitor the ongoing situation."

As of 1055 BST, Falanx shares were up 45.22% at 0.84p.