28 Sep 2020 – London, UK – Crossword Cybersecurity Plc (AIM:CCS, “Crossword”, the “Company” or the “Group”), the technology commercialisation company focused solely on cyber security and risk, today announces its unaudited interim results for the 6 months ended 30 June 2020.
Total revenue increased by 18% to £674,008.
Orders received for Rizikon Assurance during the period were 41% higher than those received in the same period last year.
The number of Rizikon opportunities continued to grow in the period.
Product and Consulting revenue increased by 43% over the same period in the prior year.
Consulting recurring revenue more than doubled over the same period in the prior year.
Total comprehensive loss for the period was £1,393,193, an increase of £315,598 over the same period in the prior year.
Cash and Cash Equivalents at 30 June 2020 was £1,550,317.
Sean Arrowsmith joined Crossword as Group Sales Director, strengthening the leadership team. Additionally, Dr Robert Coles took on the role as Non-Executive Chair of Crossword Consulting Ltd, the Group’s consulting subsidiary.
Crossword completed £1m equity fundraise through a placing and subscription of Crossword Ordinary Shares at a price of 230 pence per share.
Crossword had some notable client wins, including Cammell Laird, one of the most famous names in British industry, and Barron McCann, the IT Services company.
In Q2 2020, Crossword began collaborating with leading security reseller and managed security services provider Satisnet Limited, on the provision of third party assurance technology to its clients, as part of the expansion of Crossword’s partner programme.
Crossword’s cyber security consulting division continued to grow in a range of high-profile sectors including legal, insurance and financial services.
Rizikon Pro, launched post-period, is showing very positive early signs with substantially shorter sales cycle, in some cases as low as 4 weeks, from the typical 6-18 months. Conversion from trials to commitments is very high, running at around 50% at this early stage. This all points towards a material breakthrough in our Rizikon sales strategy.
Our flexible approach enabled us to quickly and effectively implement remote working, before it was mandated, with minimal impact on clients and sales activity.
Costs have been closely monitored and managed throughout this time of increased uncertainty in order to be prudent, with a hiring freeze in place, some redundancies and careful management of any discretionary spending.
Crossword issued guidance for businesses on how to address some of the most common security concerns for employees when working from home. The advice was made widely available as many of Crossword’s clients mobilised to keep their businesses running as normally as possible whilst adhering to UK Government and Public Health advice designed to control the spread of the COVID-19 virus.
and a loss before tax in line with current market expectations. Product and Consulting revenue is expected to growth by at least 35% over 2019. Crossword is dependent on the outcome of several large bids, including 2 multi-million pound opportunities, that are currently in progress, to deliver on market expectations for revenue for the full year. We therefore feel it prudent not to issue more detailed forward guidance until more clarity arises.
Software and process development in the first half of 2020 culminated in the launch of Rizikon Pro post period, on 16 July 2020. Rizikon Pro is an out-of-the-box, online SaaS solution, offered on a pay-as-you-go basis, giving smaller and medium sized organisations access to a set of core easy-to-use supplier assurance platform features, at a lower cost.
Crossword launched a series of webinars which cover topics from ‘the focus of the CISO in two years time’, a ‘live demo of a real world stuffing attack’ and ‘Diversity in the Cyber Security and Technology Industry’ hosted by Tom Ilube, Crossword’s CEO, which was attended by an audience of more than 400 people.
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The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
Crossword Cybersecurity plc – Tel: +44 (0) 20 3953 8460
Tom Ilube, Chief Executive Officer
Mary Dowd, Finance Director
Grant Thornton (Nominated Adviser) – Tel: +44 (0) 20 7383 5100
Colin Aaronson / Jamie Barklem /Niall McDonald
Hybridan LLP (Broker) – Tel: +44 (0)203 764 2341
Claire Louise Noyce
About Crossword Cybersecurity plc
Crossword Cybersecurity plc focuses on the development and commercialisation of university research-based cyber security and risk management related software and cyber security consulting. The Group’s specialist cyber security product development and software engineering teams work with its university partners to develop the research concept into a fully-fledged commercial product that it will then take to market. The Group’s aim is to build up a portfolio of revenue generating, intellectual property based, cyber security products. Rizikon Assurance, Crossword’s leading product, is a SaaS platform that enables medium to large companies to assess and manage all risks from their suppliers. Nixer CyberML, Crossword’s most recently launched product, is a new tool for businesses that want to solve advanced security and cybercrime problems, such as detecting and dealing with compromised accounts, fraud, and in-application denial of service attacks. Crossword’s team of expert cyber security consultants leverages years of experience in national security, defence and commercial cyber intelligence and operations to provide bespoke advice tailored to its clients’ business needs.
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Chief Executive Officer’s review
Crossword Cybersecurity plc (“Crossword” or “the Company”) weathered the first half of 2020 in good shape as the global pandemic hit, despite the UK economy experiencing its sharpest downturn in living memory. The Company took cost action early and adjusted quickly to working remotely.
Crossword continued to focus on recurring product and consulting revenue. In the first half of 2020, orders received for Rizikon Assurance increased by 41% compared to the same period in 2019. With several large bids awaiting decisions and some signs of gradual recovery, Crossword is hopeful of achieving further growth in the second half of the year. But this depends crucially on winning the major bids underway. In the period under review, Group revenue grew by 18% compared with H1 2019, with product and consulting revenue growing 43% over the comparative period with planned reduction in revenues from software development.
The continuing growth in cyber security incidents drives demand for Crossword’s products. Whilst discretionary spend has been cut back by many organisations, there are aspects of cyber security that are not discretionary, and investment continues in these areas. The UK Government highlighted the increasing importance of cyber security to organisations, reporting that eight in ten businesses say that cyber security is a high priority for their senior management boards (80%, up from 69% in 2016). Among the 46% of businesses that took part in a survey from the UK Government, completed in March 2020, that