Defenx slightly ahead of expectations

Published On 19th April 16

“We have had a strong start to 2016, launching Windows Phone 10 and Defenx Cloud Back-up products,” said CEO Andrea Stecconi

The first set of full-year results as a listed company from security software specialist Defenx plc (LON:DFX) showed a fourth consecutive year of profitable growth.

The company, which listed on Aim at the end of last year, reported an 88% increase in revenue to €4.49 million in 2015 from €2.38mln in 2014, and an operating profit before exceptional Aim admission costs of €979,000.

Those admission costs, clocking in at €614,192, however, meant profit before tax fell to €362,257 from €760,991 the year before.

Revenue growth was driven primarily by new channel partner wins at the start of 2015, both of which exceeded their annual sales targets.

Mobile revenues continued to account for around 70% of Defenx’s business with the balance from the PC and Server segments.

The focus on mobile device protection is set to continue, but the company said it is beginning to see the sale of software bundles covering the gamut of devices – mobile, desktop and server – and this trend is likely to accelerate, the company believes.

At the turn of the year, more than 900,000 users around the globe were protected by Defenx’s software and security updates.

The net cash outflow from operating activities was €1.92mln, up from €534,000 in 2014, reflecting an increase in net trade receivables to €2.17mln (2014: €561,000) and the one-off payment of flotation-related fees in December.

The company continues to work with its channel partners to speed up cash payments.

At the end of 2015, the company had cash and cash equivalents of €1.33mln, up from €205,995 at the end of 2014, while trade and other receivables had more than tripled to €3.31mln from €1.04mln at the end of 2014.

Trading in 2016 has been in line with expectations.

“2015 has been a year of good progress for Defenx and we have continued to grow the business financially and are delighted to report that we finished the year slightly ahead of market expectations,” said Andrea Stecconi, chief executive officer of Defenx.

The shares were up 8% at 128p in mid-morning trade, 20p below their listing price.