London, 28th February 2018
Cognosec AB Q4 2017 results reflect market's shifting response to cyber challenge
Cognosec AB (Publ) ("Cognosec" or the "Group") announces today its fourth quarter interim report for 2017, which can be found here.
This set of Q4 2017 results rounds off an impressive year. We believe that they bear out Cognosec's strategy and offering and propel our business forward into what will be an exciting year in 2018.
In a market that is rapidly waking up to the enormous, multi-layered and fast-moving challenge that is cyber security, the strategic differentiators brought by Cognosec AB are being recognised by customers and investors alike.
The Cognosec Group is built around the belief that cyber security is not a problem that can be solved simply by purchasing a product. It is an ongoing and evolving threat to the way we choose to live, work and operate as a society. To protect what is precious to us requires constant, up-to-date understanding and resilience.
Cognosec's expertise twinned with its multi-jurisdictional, product-neutral approach means that while our competitors focus on selling products, we are uniquely placed to solve problems for customers and ensure their reputation remains intact.
Total year revenues across the Group have increased by 17.5 % (2.6m EUR), with significant growth in the African and Middle Eastern regions. In Africa (Cognosec Kenya, Cognosec South Africa and Credence Security South Africa) annual revenue increased 19.1%, from 10.47m EUR in 2016 to 12.47m EUR in 2017. Similarly, within the Middle East (Cognosec UAE and Credence Security UAE) there was an increase in revenue of 33.9%, from 2.98m EUR in 2016 to 3.97m EUR in 2017.
HIGHLIGHTS
- Group Revenue of 6.34m EUR for Q4 2017 (Q4 2016: 4.28m EUR), an increase of 48.1% year on year.
- 2017 Revenue: 17.19m EUR (2016 14.6m EUR), an increase of 17.5% year on year.
- Q4 2017 Gross Margin increased 19.9% to 2.17m EUR (Q4 2016 1.8m EUR).
- 2017 Gross Margin of 6.63m EUR, an increase of 14.7% compared to 2016 (5.78m EUR).
- 2017 Group Loss of -3.07m EUR (2016 loss -3.69m EUR).
- Cognosec South Africa increased revenues by 68% for Q4 2017, from to 4.28m EUR, a 68%
Increase compared to Q4 2016 (2.54m EUR).
- Credence Security UAE increased revenues by 78.7% for Q42017 (1.7m EUR), compared to Q4 2016 (946k EUR).
- Group Gross Margin for Q4 2017 was 34% (Q4 2016 Gross Margin: 42%).
- Reduction in operating expenditure by 14% (738k EUR), from H1 2017 to H2 2017.
- The Group employed 139 staff at the end of Q4 2017, up 30% compared to Q4 2016 (107).
Certified Adviser
Mangold Fondkommission AB is the Company's Certified Adviser.
Telephone: +46 (0)8 5030 1550
E-mail: info@mangold.se
FOR FURTHER INFORMATION, PLEASE CONTACT:
Tim Metcalfe / Miles Nolan
IR-contacts, Cognosec AB
Email: cognosec@investor-focus.co.uk
This information is information that Cognosec AB is obliged to make public, pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on 28th February, 2018, at 20:00 CET
ABOUT COGNOSEC
Cognosec AB (Publ) is engaged in providing cyber resilience solutions and in the prevention of cyber attacks. The business conducts international operations from offices in Sweden, South Africa, the UK, Kenya, Germany, Austria and the United Arab Emirates. Listed on Nasdaq First North (Nasdaq:COGS) and as CYBNY on the OTC-Nasdaq Intl Designation under a Level 1 ADR program, Cognosec delivers services and bespoke technologies to enhance public and private sector organisations' protections against unwanted intrusions and designs holistic, organisation-wide solutions to prevent diverse and increasing forms of information and identity theft. Cognosec had revenues of EUR14.64m in 2016 and 17.19m EUR in 2017. Cognosec AB employed 139 personnel at the end of Q4 2017. For further information, please visit www.cognosec.se