Defenx PLC (LON:DFX), the mobile security software company, is pleased to provide an update on its current trading and anticipated results for the year ended 31 December 2016 (“FY16”).
Highlights
• Financial results for FY16 in line with management’s expectations
• Revenues for FY16 of approximately €7.3 million representing 57% year-on-year organic growth
• Acquisition of Memopal Srl (“Memopal”), a cloud backup and synchronisation business, completed
• €1.5 million placing and subscription completed to support accelerated investment in new software
Financial performance
The Group is pleased to report that its financial results for the year ended 31 December 2016, which are expected to be released in early April 2016, are in line with management’s expectations.
Defenx traded well in the second half of 2016 and expects to report revenues for the year ended 31 December 2016 of approximately €7.3 million (2015: €4.5 million), representing 57% year-on-year growth on an organic basis and 63% year-on-year growth including the contribution from Memopal.
The second half revenue brings the full year into profitability, resulting in an increase in full year operating margins as compared with 2015.
First acquisition completed
On 1 August 2016, the Company successfully completed the acquisition of 95.2% of Memopal, a cloud backup and synchronisation business, for a maximum consideration of up to €2.3 million, including the assumption of outstanding loans from certain selling shareholders of Memopal.
The acquisition diversified the Group’s product portfolio and added new channel partners, development and support staff. Integration is proceeding to plan and the acquisition is expected to be earnings enhancing after sales and cost synergies in 2017.
Broadened distribution
In addition to the eight new channel partners signed during 2016, Defenx is pleased to announce that its Mobile Security Suite is now available on the Café Bazaar Playstore, an Iranian Android App marketplace. Defenx is selling indirectly to end-users through an existing channel partner who is investing in the launch with a local advertising campaign. Café Bazaar receives approximately 20 million unique visits each week from users inside Iran and offers more than 25,000 downloadable apps.
Funding
In October 2016, Defenx completed a placing and subscription raising €1.5 million after expenses principally to accelerate software development. Together with new debt facilities of, in aggregate, €1.2 million, the Group is now appropriately funded for its current plans.
Outlook
Defenx is on track to launch new products, enter new markets and broaden its management team in 2017. The board of Defenx is confident that the Group will show continued growth in revenue and profit over the coming year in the ever-exciting mobile security software market.
Investor event
As announced on 10 January 2017, the Company is hosting an investor event this evening at Davy’s at Woolgate Bar and Brasserie, 25 Basinghall Street, London EC2V 5HA from 18:00. The presentation for the event will be made available on the Company’s website later today.
Investors and shareholders who wish to attend the event should register their interest here: www.eventbrite.co.uk/e/defenx-private-investor-evening-tickets-31028450932.
Andrea Stecconi, Chief Executive Officer of Defenx Plc, commented: “I am pleased that, in our first full year on AIM, we have delivered significant revenue growth by pursuing our strategy of growing the Defenx product portfolio and expanding our channel partner network. In addition, we successfully completed our first acquisition and raised €1.5 million to accelerate growth. Our B2B2C business model continues to enable us to capitalise profitably on increasing public awareness of mobile security and privacy threats. I would like to thank our investors for their continued support and look forward to reporting further progress and results in 2017.”
