Falanx Group Limited Contract Wins and Covid Business Interruption Loan (0828O)
February 05 2021 - 2:00AM
UK Regulatory
TIDMFLX
RNS Number : 0828O
Falanx Group Limited
05 February 2021
5 February 2021
FALANX GROUP LIMITED
("Falanx", the "Group" or the "Company")
Contract Wins and Coronavirus Business Interruption Loan
Falanx Group Limited (FLX.L), the AIM listed provider of cyber
security and strategic intelligence services, announces new
contract wins and renewals alongside discussions in relation to the
UK government backed Coronavirus Business Interruption Loan
("CBIL").
Cyber Security Division
The division has since November 2020 signed a further five new
customers as well as an expansion to some existing contracts for
Triarii, its enhanced cyber security monitoring service. The new
customers span a range of sectors, namely charity, financial
services, pharma, defence and IT - clearly illustrating the
universal appeal of the Triarii offering. This has been achieved
through a combination of direct and indirect sales including the
SolarWinds and Trustmarque partnerships. In terms of service
coverage, they include Triarii MDR, Managed EDR and Triarii for
Sentinel - the Microsoft Azure-based service which was launched on
13 January 2021 and which was developed in partnership with
Trustmarque, part of Capita plc. Further details are on
https://www.trustmarque.com/cyber-security/managed-detection-and-response-service/
The division has also maintained the strong performance of its
penetration testing business, and this is materially above the
pre-COVID-19 sales order run rate achieved this time last year.
Clients are from several sectors including insurance and
construction, with one client signing a three year framework
agreement worth approximately GBP180,000 in total.
In total the order value across all of these contracts is in
excess of GBP700,000, of which approximately GBP400,000 will
benefit the 2021 calendar year. The order pipeline remains strong
with similar prospective sales for both penetration testing and
security monitoring.
Assynt Strategic Intelligence Division
The division has continued with its solid profitable performance
which remains in line with management expectations. It has recently
received a renewal for the provision of analysts from an existing
client, one of the world's largest technology companies, for
GBP1.2m spread over the next three financial years. Further
significant cyclical contract renewals from major corporations are
expected to be received in the next few months, and it has a robust
pipeline of opportunities from new and existing customers.
Potential Coronavirus Business Interruption Loan ("CBIL") and
Capital Reconstruction.
Falanx announces that it is in discussions with a specialist
lender for the provision of a UK Government backed CBIL loan. This
loan would enable the Group to make earnings enhancing acquisitions
to enhance its core Cyber division, as well as supporting organic
growth. To qualify for the CBIL the Company will be carrying out a
capital reconstruction by reducing the share premium account, to
decrease the deficit on retained earnings. The reduction of the
deficit on retained earnings will, amongst other things, facilitate
Falanx in making distributions to its shareholders at some point in
the future. Under BVI law the reconstruction will require a change
to the memorandum and articles of association and a general meeting
will shortly be called in respect of this proposal.
Mike Read, Chief Executive, commented: "I am pleased with the
continued contract momentum in both of our divisions. Triarii is
gaining further traction and recent sales of, and interest in, our
Microsoft Sentinel service offering, which was only launched last
month, validates our chosen strategy of channel partners and using
third party leading technologies to deliver our services. Customers
in both divisions are increasing their commitments to us in terms
of both quantum and duration and again, this underlies the value of
our services to them. We will look to progress the CBIL opportunity
and will update the market at the appropriate time as we see this
as a strategy which can further support equity growth by enabling
earnings enhancing acqusitions."
Enquiries:
Falanx Group Limited Via IFC
Alex Hambro Chairman
Mike Read CEO
Ian Selby CFO
Stifel Nicolaus Europe Limited, Nomad and
Joint Broker
Alex Price / Fred Walsh + 44 (0) 207 710 7600
IFC Advisory Ltd, Financial PR & IR
Graham Herring / Zach Cohen +44 (0) 203 934 663
About Falanx
Falanx Group Limited, is a global intelligence and cyber defence
provider working with blue chip and government clients. For more
information: https://www.falanx.com/
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