Member Info for JPGt

not sad just practical. Why build and test code youself if you can buy the IP, especially if if it gives you a good head start. Writing code for delivery to customers is not cheap.

agree completely. Duscount nefessary to cover the large spread.

Ecsc: established business with cash to invest in expansion. Too many shares held by insiders for my liking. Whats puzling me is why they need 37 sales staff for revenues of 3 to 5 million? Flx probably have more upside to their share price. Also going for recruitment to support expansion. A placing this year to fund an acqusition, and possibly to provide additional working capital is a possibility. The other company to watch out for is Shearwater who have assembled a corporate team to build a cyber security business, but have yet to anounce their first acqusition.

Thanks for the reply re the 4.5M estimate. The 240% growth in their presentation I took as refering to the growth in one year of video content in one year - this must mean further contracts were landed in 2016 but by how much is not easy to estimate.

Any idea wher TW got his revenue estimate of £4.5m for 2016 calender year? I hold a small stake. ATB

AUR have raised 6M to change from a mining group to one focused on cyber security services, through acqusitions. They also intend to rename the group Shearwater Group. So if sucessfull this will be the third pure cyber services play on AIM alongside FLX and ECSC. This should highten interest l in the sector further if nothing else. The company to first demostrate a scaleable business serving SMEs could be the ultimate leader in the field. Could this be FLX - given their curent position and team they have as good a chance as any.

New Cyber company float: ECSC floated on aim today raising £5.9M, and valued at £15.5M, and up 20% on first day of trading. Seems very similar business to FLX, with 50 staff and ambitions for 200 staff in the next couple of years. 80% of shares are still held by the founders(directors) and associates (familly/ friends?). I can't locate their admission document on their web site. Would love to know details of how £2.7M revenue can result in £2.2M gross profit as they claim - what could net profit be?

Sorry for the typo in the subject line. Atb

Came across NCC, a FTSE 250 company that has two divisions, one of which is Assurance with a CSOC in Manchester. The interesting bit is that they anounced loss of three major contracts in October and were under pressure on others. This was an unexpected annuouncement and saw their share price drop significantly. It hasn't yet recovered. On iii, a poster and previous holder of the shares said he knew of the company, and it was known they were expensive. Further speculation, but it is a posibility they lost out to the likes of FLX and their partners with their lower cost base, at contract renewal.

Good to see a contract rns, but numbers just bandied about and no clear indication of revenue to WTM. Message to management: Why bother saying anything if you cant be clear what this means for WTM?

I was researching Microgen (GCGN) and noticed their Aptitude software division commissioned the following survey (21st July 2016) of Insurance proffessionals: “In a recent survey of insurance professionals conducted by Aptitude Software in the second quarter of 2016, we asked respondents to identify challenges, risks and forecasted IT spend for their organizations. Respondents included both business and technology stakeholders.” They go on to say: “When asked what they predict will present the greatest risk in the coming 12-18 months, 38% cited cyber risk and security, followed by 28% responding that competitive pressures will pose the most risk to their firm.” Seems to verify what FLX have been saying, i.e Cyber is top risk concern.

Clearly there was little new news to excite, given that the trading update was only a couple of weeks before. The tie up with NASSTAR is not quite the contract with an IT service provider I would have liked to see. However, I like the look of NAS (heavy recemt investment and just moving into profit) - thet have bought in cyber security services before, and hence have shown that they are willing to partner to address client needs. So, I suggest the partnership is potentially more than just a heads of agreement to explore new markets for exampe, but a firm opportunity NAS and FLX are going for together, which will formalise the partnership if won. Also, given SB's background, he is highly likely to know the pitfalls and value of such partnerships to the benefit of both parties.

Agreed especially regarding the efforts and enterprise of JB to get Falanx as a group and the Cyber Divion especially to where they are (which is a calculated 'plan in motion' we are all hoping succeeds!). As well as the reiteration of the positive outlook expressed in the trading update of 17th, we may get an update on the current vision, which I imagine was shared with Myers, and of course the new CEO Stuart Bladen. The vision could be getting greater traction in the UK contracts (to be expected and long awaited). The surprise, if any, could be re-energising the original plans from 2014 to offer cyber services (e.g. mirror the UK consultancy and establish a cloud based CSoc and pure cyber security offering) abroad. Total conjecture on my part you understand, but maybe something JB can spear head given his new role as non-exec and his contacts, and the CEO's contacts/ background. Having said that, the interims could just be a reiteration of the news from the 17th, and we may still have to wait for contract news. ATB

MrR Norhing to add, as Im a novice in intepreting market movements. I was pleased that JB in his recent webcast so close to the interims, said forecasts had not changed since the finals. I dont belive the forecast was for anything fantastic. If they just provide the numbers next month to back up the statements made that they are running at average revenue of £80k per month for the Cyber Divison and growing, it would be good in my view. Ideally the growth rate they demonstrate should be sufficient so that for once we can forsee no need of a placing in the next year at least (unless for an acquisition) Atb

If the rumour of a large contract is correct it could be one of: 1 a multiyear service contract (value 300 to 500k?) 2 a few contracts such as the above 3 or a contract with an IT Service company to supply to their exising clients. Any other predictions? If its 2 or 3 from the above, that could be enough to get the price moving sooner rather than later.

Its taking much longer than JB anticipated. Convincing SMEs to part with £50k per annum is not easy, as cyber protection will be a grudge purchase - until they are attacked or law or industry standards demand that SMEs must demonstrate compliance to cyber security standards. Large organisations (national grid, banks etc.) plan for the worst case scenario. SMEs will be looking for the cheapest route to risk mitigation and compliance - hence FLX (and a host of other small players and IT service providers themselves). In my view FLX Cyber have demonstrted excellent progress in setting up and I see no obvious gaps in their product (im not an expert). It is 'just' the difficult task of convincing others of the value and to part with their money that is taking much longer than hoped for. The acquisition of ASC to complete the offering was a significant step to 'help' SMEs realise they need FLX (the most important aspect being Jay's experience, reputation, former clients, and contacts). It could come to nothing (FLX could be overtaken by events or find it difficult to recruit) but they have as good if not better chance than many to become the go-to Cyber security supplier for all SMEs with any type of IT connectivity. Roll on the contract volume, and movement towards profit (however small in the first place)! atb.

At present all contracts are small, and I expect that to continue except for the occasional surprise/ delta. Each small contract, whether private sector or public sector, I expect brings in Consultancy/Assess revenue circa £100K and a Monthly fee for Monitor of £4 to 5 K (i've used the revenue information in the rns of 21st Dec 15 to estimate these numbers). Thus FLX is a volume business model and in my mind it would be good news to see them reaching a target volume of 20 long term, rolling contracts soon. When will that volume be reached? - as it has often been said contract news would be good. Note, I dont believe FLX are competing for the same clients as some of the larger players (BAES etc.) who would more naturaly gravitate to addressing the needs of large complex organisations. The larger companies can't easily compete with FLX at the volume end of the market which, as JB says, is very imature, but potentially huge. Beyond 20 clients, the next target for FLX would be 100 clients and so on. Working with another IT services company who have an existing large client base (didn't JB say something about a tie up with Keytech?) could be one way of growing the volume.

Falanx called in by Vesk (UK cloud desktop hosting company) to assit with security audit following cyber ransomware attack. For anyone who doubted, at least it shows part of their business model (Consult Assess) is real.

Dibs One of the job adds specfically notes a "new birmingham premises". Also the jobs specifically ask for sc clearance, and also dv (the latter is one of the higher security clearances obtainable). This can only mean working with existing or potential clients with classified IT (e.g. MoD, defence industry or home office), perhaps as part of the contract with the MoD CSOC which is said to destined for Corsham nr Bath (not Birmingham). Without any specific news to go on, the minimum we can read into this is that the company's growth ambitions have not diminished in the slightest, despite the slow ramp up of sales.

Same sector but different products/offering. So no reason why flx should have bid for the contract.