LONDON (Alliance News) - Shares in security company Falanx Group Ltd plunged on Wednesday morning after the company swung to a pretax loss in its financial year to the end of March as its revenue halved.
Falanx said its pretax loss for the year was GBP2.2 million, compared to a GBP9,488 profit it made a year earlier, as revenue fell to GBP1.9 million from GBP4.4 million. The fall was primarily to the loss of a contract for its Falanx Resilience project-based consultancy in the Middle East. The company said it remains hopeful it will secure the work it lost again, but the contract it held in an unnamed Middle Eastern country was put on hold following the death of a leader.
The group's Cyber and Intelligence business both performed solidly over the year.
"It has been an encouraging year of progress for the group, in which we have invested carefully into both our Cyber offering and our wider group sales functions. Whilst Cyber represents our strategic focus and future, we remain committed to running a diversified group across our Intelligence, Cyber and Resilience divisions. All are strategically complementary and allow the group to benefit from both regular income and project work," said Chief Executive John Blamire.
Shares in Falanx were down 27% on the news to 9.25 pence, the worst performer in the AIM All-Share in early trade.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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