Crossword Cybersecurity plc (AIM: CCS, “Crossword”, the “Company” or the “Group”), the cyber security technology commercialisation company, today announces its unaudited interim results for the 6 months ended 30 June 2019.
Orders received for Rizikon Assurance during the period were more than double those received in the same period last year
The Rizikon Assurance pipeline more than doubled in the first six months of this year and now stands in excess of £3 million over 100 companies in a wide range of sectors
Product and Consulting revenue increased by 21% over the same period in the prior year
Total revenue increased by 5% to £570,757
Total comprehensive loss for the period was £1,077,595, an increase of £246,804 over the same period in the prior year, following investment in product development and sales and marketing
Cash and Cash Equivalents at 30 June 2019 of £1,294,491.
The Consulting division launched its vCISO service (virtual Chief Information Security Officer), securing its highest value, multi-year contract to date
Worked with Imperial College London on enhancements to our second product, Nixer
Appointed a new world class Advisory Board made up of senior figures from academia, the corporate world and government.
Continuing to convert pipeline into revenue, aiming to close several large opportunities in the final quarter, and the Board remains confident that full year results will be in line with market expectations
Next version of Rizikon Assurance which includes Supplier Assurance Framework dashboard was launched on 4 Sept
Nixer, our second product, on track for release in Q4 2019
Close to agreeing one or more distribution deals over the coming months.
Tom Ilube, Chief Executive Officer, commented:
“I am very pleased with the progress achieved in the first half of 2019, with a significant rise in the order book and pipeline for both Rizikon Assurance, and Consulting. We expect the momentum achieved in H1 to continue, with our focus on scalable, recurring product revenue, through conversion of pipeline into orders.”
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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 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 the cyber maturity and GDPR readiness of their suppliers. 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.
Chief Executive Officer’s review
Crossword Cybersecurity plc (“Crossword”) continues to focus on scalable, recurring product and consulting revenue, through conversion of our healthy sales pipeline into orders. In the first half of 2019, orders received for Rizikon Assurance were more than double those received in the same period last year. Crossword’s Rizikon bid pipeline now stands in excess of £3m across over 100 companies in a wide range of sectors, up from £1.4m at the end of December 2018. The strength of the order book for both Rizikon Assurance and Consulting puts Crossword in a strong position for growth at the end of the first half of 2019. In the period under review, Group revenue grew by 5% compared with H1 2018, with product and consulting revenue growing 21% over the comparative period as we shifted the focus away from software development revenue toward recurring product revenue.
Demand for Crossword’s products and services is driven by the continuing growth in cyber security incidents. In the second quarter of 2019, businesses in the UK saw a 179% increase in cyber attacks, an average of 146,491 attempted cyber attacks, compared to the same period last year. Ransomware threats have risen by 46% according to Kaspersky with more than 230,000 users attacked during Q2 2019. Kaspersky detected 16,017 new ransomware samples in the quarter, more than double the number of a year ago.
Rizikon Assurance, our Software-as-a-Service (SaaS) supplier risk assessment solution based on a recurring revenue model, directly addresses supply chain risks and we have seen a growing trend in supply chain attacks. Ponemon Institute Survey reports that 59% of companies in the UK and USA said they experienced a data breach via a third party. The UK’s National Cyber Security Centre (NCSC) has provided a number of examples of supply chain attacks. For example a cyber-espionage group, Dragonfly, has allegedly targeted the supply chains of the energy sector across Europe and North America, attempting to install malware infected files in order to infect clients.
Rizikon Assurance also helps organisations address General Data Protection Regulation (GDPR) and the Information Commissioner’s Office (ICO) has significantly ramped up its enforcement of GDPR, announcing its intention to fine British Airways £183 million due to a breach involving 500,000 customers’ personal data and Marriott International Inc. £99 million when 7 million UK residents’ details were exposed.
On 4 September 2019, we launched the new version of Rizikon Assurance, Rizikon Assurance 2.0, which allows organisations to visualise all risks for each third-party through fully customisable 360-degree supplier scorecards. The new Third-party Assurance Framework Dashboard – an industry first – gives Supplier Management teams, Chief Risk Officers and senior executives a complete understanding of third-party risks across their supply chain, helping identify problem areas and prioritise remedial action