CYBER1 achieves a 485% year on year increase in revenue, delivering the most successful Q1 in the company’s history, with revenue results of 19.6m EUR
- Q1 2019 revenue equated to 19.63m EUR, an 485% increase (16.28m EUR) on Q1 2018 (3.35m EUR).
- Organic revenue increased by 288% (9.68m EUR), from 3.35.m EUR Q1 2019, to 13.03m EUR Q1 2018.
- Group Q1 2019 EBITDA of -130k EUR, (Q1 2018 EBITDA -1.22m EUR) ahead of expected results.
- Credence Security Middle East & India increased revenue by 232% from 896k EUR Q1 2018, to 2.99m EUR in Q1 2019, with a large amount of new enterprise business.
- Cognosec SA increased revenue by 542% (7m EUR), from 1.3m EUR Q1 2018, to 8.3m EUR Q1 2019, with several large multimillion deals.
- Cognosec Kenya increased revenue by 165% (281k EUR), from 170k EUR Q1 2018, to 451k EUR Q1 2019.
- CYBER1 appoints New Group CEO.
- CYBER1 appoints New Group COO.
- During the Quarter, CYBER1 announced the signing of exclusive Heads of Terms of Agreement, pursuant to the acquisition of IntaForensics, a leading Digital Forensics provider.
- CYBER1 announced five-year Cyber Security Partnership with Formula 1.
Performance Overview
The first quarter results detailed in this report, have continued the strong momentum at the close of 2018, to maintain the positive direction and performance of CYBER1.
Following extensive planning at the end of Q4 2018 the subsidiaries have materially performed over and above last year’s quarterly results and which performance is complemented by a strong and robust pipeline established for the rest of 2019.
The significant positive deviation to historical performance has been underpinned by a number of large deals secured across our African and Middle Eastern regions, where our subsidiaries have been working through highly competitive and stringent tendering processes, to secure a number of multi-year product and service contracts with multi-national clients. These deals were secured through our ability to be competitive both in terms of delivering value for the end user but more importantly through customer relationships, that we strive to build with our partners. We value greatly the responsibility in holding, securing and fortifying their sensitive data and we believe this resonates strongly when decisions are made in choosing a partner in a similar vein to an auditor or legal counsel.
With performance of many of the subsidiaries being traditionally back-end loaded, this quarter marks a significant improvement in performance year on year, which combined with our high renewal rates will put CYBER1 in a strong position to realise material growth in 2019 and beyond.
During the first quarter the above organic growth has been realised at 288%. At CYBER1, our strong industry knowledge, highly accreditated staff and expertise in our vendor solutions gives customers a single provider for all of their cyber security needs.
This key mission statement for CYBER1, is in building long term trust with our partners and combining proven results in implementing our services and solutions. We strongly feel this client centred approach will result in longer term benefits to CYBER1, its customer portfolio and its Shareholders.
RESULTS IN DETAIL
Q1 2019 revenues across the Group have increased 485% (16.28m EUR), recording 19.63m EUR compared to 3.36m EUR in Q1 2018.
Consistently high organic annual revenue growth (without factoring in the newly acquired companies in Itway - Turkey and Itway - Greece) has been realised at 288% (9.68m EUR), when comparing Q1 2018 vs Q1 2019. The ability to engage with new enterprise clients in providing our unique offering, has increased our market presence within EMEA, coupled with the further opportunity to penetrate existing enterprise customers and provide a number of additional products and services to them is a positive sign that this revenue growth will persist.
A planned increase in operating expenditure of 1.56m EUR (56%) for Q1 2019 versus 2018, is due to the inclusion of two new subsidiaries that were assimilated within Q3 2018, combined with additional investment in marketing exposure and technical resources within the Group, Total Q1 2019 operating expenditure stood at 4.33m EUR (2.77m EUR Q1 2018). A planned shortfall in margins stretched the Group’s cash position, pending debtor collections and the unwinding of deposits however all within managed parameters.
HIGHLIGHTS
- Total revenue growth increased by 485%, from 3.35m EUR Q1 2018, to 19.63m EUR Q1 2019
- Organic revenue (excluding 2018 acquisitions) increased by 288%, from 3.35m EUR Q1 2018, to 13.03m EUR Q1 2019.
- Group Gross Margin increased 161%, from 1.54m EUR Q1 2018, to 4.02m EUR in Q1 2019.
- Group Gross Margin for Q1 2019 was 20% (Q1 2018 Gross Margin: 46%).
- Group Q1 2019 loss of EBITDA -160k EUR, (Q1 2018 EBITDA -1.2m EUR).
- Credence Security Middle East and India increased revenue by 232%, from 896k EUR Q1 2018, to 2.99m EUR Q1 2019.
- Cognosec SA increased annual revenue by 538%, from 1.3m EUR Q1 2018, to 8.3m EUR Q1 2019.
- Heads of Terms agreed with leading Digital Forensics Provider Intaforensics.
- CYBER1 announces 5-year Cyber Security Partnership with Formula 1.
Contacts
For additional information, please contact: Tim Metcalfe or Miles Nolan, Investor Relations, IFC Advisory, CYBER1. Telephone: +44 203 934 6630.
E-mail: cyber1@investor-focus.co.uk
Liolios, based in California, United States, act as CYBER1’s North American investor relations advisor.
For additional information, please contact: Matt Glover or Najim Mostamand, CFA, Liolios Group.
Telephone: +1 (949) 574-3860
E-mail: cyber1@liolios.com
This information is information that CYBER1 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 26.04.2019 at 17:00 CET.
About CYBER1 (Nasdaq First North: CYB1.ST) (ADR program OTCQX: CYBNY)
CYBER1 is engaged in providing cyber resilience solutions and conducts its operations through physical presences in UK, Greece, Italy, Sweden, Kenya, Austria, South Africa, Turkey, Ukraine, United Arab Emirates and the United States. Listed on Nasdaq First North (Nasdaq: CYB1.ST) and as an American Depositary Receipt (OTCQX: CYBNY), the Group delivers services and technology licenses to enhance clients’ protections against unwanted intrusions, to provide and enhance cyber resilience and to prevent various forms of information theft. CYBER1 had revenues of 44.54m EUR in 2018 and 239 personnel at the end of Q1 2019. For further information, please visit www.cyber1.com/investors.
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