Falanx Assynt20 Sep 2020 19:55
Falanx Assynt, the Group's strategic intelligence division, has been trading consistently profitably on the back of its strong recurring revenue contracts with global companies. Overall monthly recurring revenues comprised circa 94% of its total revenues. The Group was recently recognised by Chambers & Partners as one of the leading global political risk advisory firms in the UK.
Overall costs have been reduced and a portion of Falanx staff furloughed as the Group's move to a remote home environment has proved successful. This has enabled the Group to exit premises leases in July 2020 located in Sussex and London, resulting in the Group HQ being located at its Reading office. Overall, the Group's total monthly expenditure (cost of sales, capex, exceptional & opex) each month has been reduced by approximately 30% in the same period in 2019. For additional context, the Group's average monthly revenues in the final six months of the year ended 31 March 2020 exceeded the current monthly cost base on an operating level. Whilst there has clearly been some impact of COVID on the Group's recent revenues, its overall EBITDA loss in Q1 FY21 was reduced significantly by 60%. Furthermore, the bulk of the Group's investment programme was completed in 2019 and its Cloud technology platform 'Furnace' was spun out in December 2019, further reducing the monthly cash expenditure.