Defenx plc Trading Update (1583G)
February 28 2018 - 2:01AM
UK Regulatory
TIDMDFX
RNS Number : 1583G
Defenx plc
28 February 2018
28 February 2018
Defenx PLC
("Defenx" or the "Company" or, together with its subsidiaries,
the "Group")
Trading Update
Further to the announcement of 29 January 2018, Defenx PLC
(AIM:DFX), the cyber-security software group, provides the
following update for the year ended 31 December 2017 ("FY17").
Key points
-- Consolidated revenues for FY17 materially below prior year
-- Cloud Backup revenues of approximately EUR0.52 million, a modest full year-on-year increase
-- Refocused strategy to deliver cloud storage solutions to corporate customers
-- Funding options under active consideration with continued support from BV-Tech
Financial performance
As previously advised and for the reasons set out in the
announcement of 25 October 2017, trading in the second half of FY17
was materially below expectations due to the cancellation of
confirmed orders, some of which had been invoiced in the first half
of FY17.
The Group is not yet able to report its revenues for the year
ended 31 December 2017 pending the outcome of audit work in respect
of its Security segment sales and re-iterates the previous
statement that consolidated revenues will be materially below those
in the prior year ended 31 December 2016. Accordingly, the Group
will report a significant loss, including one-off charges, for the
full year ended 31 December 2017.
Revenues for Cloud Backup products (arising from the acquisition
of Memopal in August 2016) were approximately EUR0.52 million (5
months ended December 2016: EUR0.20 million), reflecting a modest
full year-on-year increase.
It remains the Group's intention to early adopt IFRS15 Revenue
from contracts with customers for its FY17 results, which is
expected to have an impact on the results for FY17 and the prior
year comparatives.
Refocused strategy
The board is now looking to implement a strategic plan, defenx
2020, which will see the Group build on its existing cloud backup
product with a focus on corporate customers. This strategy reflects
the changing competitive landscape, growing demand for cloud-based
services, feedback from existing and potential customers and the
support of the Company's largest shareholder, BV-Tech SpA
("BV-Tech").
Progress continues in bringing the Group's development
activities in house with the support of BV-Tech. In parallel, a
detailed review is currently underway to fully understand the
previously announced performance and back-end integration issues
and determine how best to deliver value from the Group's investment
in security products.
We are encouraged by the sales pipeline and recent wins
including a new contract to deliver enterprise cloud to an existing
customer and leader in digital solutions for the professional
adviser and SME markets in Italy. Invoicing is expected to start in
the second quarter and we hope to grow the sales and operational
team once the Group's finances have been stabilised.
Funding
Since the announcement of 29 January 2018, there has been no
material change in respect of the collection of trade debtors
arising from the Group's security product sales. Management
continues to pursue all options, including legal proceedings.
As at 26 February 2018, the Group had EUR0.66 million of cash
and undrawn facilities of approximately EUR0.76 million (consisting
of a GBP450,000 supply chain facility, EUR229,000 invoice
discounting facilities and an overdraft of EUR20,000). The Group is
actively exploring funding options and BV-Tech continues to be
supportive.
Alessandro Poerio, Chief Executive Officer of Defenx,
commented:
"Since joining the board as CEO last November, I have worked
hard to focus the Group's limited resources where they can best
deliver value and cash in the short term. The refocused strategy,
centred on our existing cloud storage technology, addresses real
demand from the corporate and public administration markets. Yet
there is plenty of hard work ahead of us to ensure we deliver
competitive products and support customers to re-build our
business. I hope to provide future updates as we build our team and
stabilise the Group's funding."
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014.
Enquiries
Defenx PLC
Alessandro Poerio - Chief Executive
Officer
Philipp Prince - Chief Financial Officer 020 3769 0687
IFC Advisory (Financial PR and IR)
Tim Metcalfe / Graham Herring / Heather
Armstrong 020 3934 6630
Strand Hanson Limited (Nominated and
Financial Adviser)
Angella Hallett / Richard Tulloch /
James Bellman 020 7409 3494
WH Ireland (Joint-Broker)
Adrian Hadden / Alex Bond 020 7220 1666
Beaufort Securities (Joint-Broker)
Jon Belliss 020 7382 8300
This information is provided by RNS
The company news service from the London Stock Exchange
END
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