Quarterly Report Ending 30 September 2017 October 31 2017
Year on Year Revenue Growth and Second Acquisition Completed
Cognosec AB (Publ) ("Cognosec" or the "Group") is pleased to announce its results for Q3, 30th September 2017.
Total year to date revenues grew 4.8% to 10.9m EUR (Q3 YTD 2016: 10.3m EUR). This, combined with a lower cost of sales, demonstrated improved margins compared to the third quarter of 2016. Total Gross Profit for Q3 2017 increased 5.6% from 1.2m EUR (Q3 2016) to 1.3m EUR (Q3 2017). There were a number of key contracts that did not close in time for Q3 in Africa and the Middle East and it is our and our clients' intent to have these completed by the end of the financial year.
Streamlining operations, to increase efficiencies have reduced costs across the Group by 633k EUR (23.11%) compared to the previous quarter. Efforts to ensure that investment and expenditure are harnessed to their greatest effects across the Group are underway. Planned shortfall in margins stretched the Group's cash position, pending debtor collections and unwinding of deposits. The overall Group loss for YTD Q3 2017 -2.7m EUR (YTD Q3 2016: -1.23m EUR). In addition to the above, Cognosec AB formally announced the completed acquisition of Intact Software on the 22nd of September.
HIGHLIGHTS
- Group Revenue of 3.34m EUR for Q3 (Q3 2016: 3.23m EUR), an increase of 3.39%
- YTD Group Loss of -2.7m EUR (YTD 2016: loss -1.8m EUR)
- Group Gross Margin for Q3 2017 was 39.1% (Q3 2016 Gross Margin: 38%)
- The Group employed 140 staff at the end of Q3 2017, up 31% compared to Q3 2016 (107)
- Beyond the quarter period, Cognosec AB announced a private placement of shares for 800k EUR, to strengthen the Group's working capital position.
*Result per share refers to result per share atributable to equity owners of the parent company. There is no dillution of earnings per share. This report is published in English. Average number of shares outstanding for the period 30 September 2017 (Q3 and YTD 2017) were 257,179,500 (Q3 and YTD 2016 number of shares outstanding 257,179,500).
Contacts
For additional information, please contact: Tim Metcalfe or Miles Nolan, Investor Relations, IFC Advisory, Cognosec AB. Telephone: +44 203 053 8671. E-mail: cognosec@investor-focus.co.uk
About Cognosec AB (Nasdaq: COGS.ST)
Cognosec AB (Publ) is engaged in providing global cyber resilience solutions and conducts its operations through physical presences in Sweden, South Africa, UK, Kenya, Germany, Austria and the United Arab Emirates. Listed on Nasdaq First North (Nasdaq: COGS.ST), the Group delivers services and technology licences to enhance clients' protections, against unwanted intrusions, to provide and enhance cyber resilience and, to prevent various forms of information theft. Cognosec had revenues of 14.64m EUR in 2016. For further information, please visit www.cognosec.se