Proactiveinvestors United Kingdom Defenx PLC https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom Defenx PLC RSS feed en Wed, 17 Jul 2019 11:18:55 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Defenx shares jump as it rewrites agreement with Italian partner ]]> https://www.proactiveinvestors.co.uk/companies/news/218225/defenx-shares-jump-as-it-rewrites-agreement-with-italian-partner-218225.html Defenx plc (LON:DFX) shares jumped more than 50% in Tuesday’s early deals on the news of a distribution and services deal with BV Tech, a major shareholder in the company (with 64%).

Replacing a prior arrangement from June 2017, the new agreement gives BV Tech the right to sell the company’s cybersecurity products in Italy – in industries such as defence, space, national security or critical infrastructures sectors. The deal will run to the end of 2023.

In return, Defenx will receive €1mln, across three instalments before the end of the first half of 2019, it will also be due royalties equal to 50% of revenues in excess of €5mln.

BV Tech has also committed to buying at least €1.2mln of products over a two year period.

It was noted that certain prior restrictions under the previous deal have now been removed.

Defenx at the same time enters into a services agreement with BV Tech, with aggregate fees capped at €1.2mln.

In London, Defenx shares rose by 2.3p or 51% to trade at 6.8p.

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Tue, 09 Apr 2019 09:18:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/218225/defenx-shares-jump-as-it-rewrites-agreement-with-italian-partner-218225.html
<![CDATA[News - Defenx plummets after profit warning ]]> https://www.proactiveinvestors.co.uk/companies/news/186177/defenx-plummets-after-profit-warning-186177.html Shares in cyber-security software group Defenx plc (LON:DFX) plummeted after it issued a profit warning.

A small number of high value contracts are unlikely to be recognised in 2017, while the delivery of product updates to address certain recently-identified performance issues and back-end integration is taking longer than expected. 

Wait, it gets worse …

The broadening of the company's product portfolio, which is primarily intended to address the corporate sector, is behind schedule. Accordingly, the conversion of opportunities into firm orders is taking longer and requiring more investment than was initially anticipated.

The board said it currently expects to report a loss for the full year. The board is satisfied that the group's cash and available facilities, which are in the region of €2.2 million, are sufficient for its current requirements.

READ: Cyber security specialist Defenx says bond deal will help accelerate growth plans

A formal process is now under-way to strengthen the executive management team including the recruitment of both a group chief operating officer and a group chief technology officer to lead the operational and development teams. This is intended to accelerate the internalisation of the group's development activities, ensure its products remain competitive in fast-moving markets, and to enhance the group's sales capacity.

The shares were down by 40% at 58.8p in mid-morning trade.

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Wed, 25 Oct 2017 09:53:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/186177/defenx-plummets-after-profit-warning-186177.html
<![CDATA[News - Cyber security specialist Defenx says bond deal will help accelerate growth plans ]]> https://www.proactiveinvestors.co.uk/companies/news/182604/cyber-security-specialist-defenx-says-bond-deal-will-help-accelerate-growth-plans-182604.html The latest high-profile attack by hackers was on the email accounts of Members of the Scottish Parliament.

One wonders what they were looking for.

That aside, the security breach was one of a series that included the WannaCry blitz that threatened to disable the NHS.

Against that backdrop, the share price of Defenx plc (LON:DFX), a specialist in mobile software security, has advanced 75% in the year to date.

CLICK HERE: To learn more about bond offer

The company recently took advantage of the strength of its share price to launch a stock placing to raise a gross £1.74mln in what CFO Philipp Prince describes as “investing to accelerate growth”.

It is part of a two-pronged approach that will also see the company bring in as much as a further £2mln via UK Bond Network, the successful peer-to-peer platform.

While opportunistic, the decision to tap the debt and equity markets was strategically and commercially well thought out.

In fact, the development capital ought to allow Defenx to bring forward a significant potential growth opportunity.

For it plans to invest £2.7mln (€3mln) developing its suite of consumer-focused products for the corporate arena, which accounts for more than half of the multi-billion dollar cyber security market.

MORE: On UK Bond Network offer

It isn’t doing this alone. In the spring, it struck up a collaboration with the Italian tech firm BV-Tech that effectively gets Defenx’s foot through the door to see companies.

“[The investment] will allow us to add on features and ‘corporatise’ products so they are addressing the needs of companies,” said Prince.

The software must also anticipate the needs of the general data protection regulations (GDPR) being enacted late next May.

“So, really ours is a time-limited opportunity,” explained the Defenx CFO.

“A whole host of things are coming together, a perfect storm if you will, that means by raising money now and despite bringing forward the dilution we had intended we will be in a much stronger position commercially.”

As mentioned above, Defenx hopes to raise up to £2mln via the UK Bond Network, with £1.25mln of that underwritten.

The coupon will be 8-10%, depending on how competitive the tendering process is, and the debt is convertible at 200p a share – some 25% above the level at which equity was issued as part of the placing.

The company’s stock has achieved the £2 landmark in recent history, so there is a realistic chance that it can get there again.

DEFENX Bond offer 

That said, the equity would probably have to consistently trade at a decent premium to the conversion price for a number of weeks or months to tempt the switch.

But it does give debt holders ‘optionality’, Prince pointed out. The conversion price also mitigates dilution and offers investors unable to take part in the placing the chance to participate in the Defenx growth story.

It says a great deal about the dysfunctional nature of the UK financial system that the banks couldn’t or wouldn’t fund the expansion of a business at the base of the value ‘hockey stick’.

UK Bond Network offered a financially competitive alternative that was more professional and far less punitive than some of the other funding routes open to AIM companies.

“There are a number of services, many of them with terms that were less than ideal,” said Prince.

“We met UK Bond Network last year, we got to know them and as far as we could see their structure is properly implemented; it is built on much bigger corporate bond structuring.

“It is industry-standard recognisable, while the conversion is at a premium. So it worked for us.”

To learn more about the Defenx UK Bond Network convertible bond offer click here ]]>
Thu, 17 Aug 2017 10:57:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/182604/cyber-security-specialist-defenx-says-bond-deal-will-help-accelerate-growth-plans-182604.html
<![CDATA[Media files - Defenx plc raising up to £2mln through UK Bond Network ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/7911/defenx-plc-raising-up-to-2mln-through-uk-bond-network-7911.html Thu, 10 Aug 2017 13:56:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/7911/defenx-plc-raising-up-to-2mln-through-uk-bond-network-7911.html <![CDATA[Media files - Stocks Radar: Andalas Energy, Defenx - Tip TV ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/7334/stocks-radar-andalas-energy-defenx-tip-tv-7334.html Tue, 25 Apr 2017 11:08:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/7334/stocks-radar-andalas-energy-defenx-tip-tv-7334.html <![CDATA[News - Defenx brings strategic advisor on board ]]> https://www.proactiveinvestors.co.uk/companies/news/171083/defenx-brings-strategic-advisor-on-board-171083.html Mobile security specialist Defenx plc (LON:DFX) has brought on board a division of one of Italy’s largest venture capital firms as a strategic adviser.

MBooster – an investment fund of digital markets investor, Innogest – will work alongside the Defenx team to help drive growth at the AIM-listed firm.

The MBooster team will be spearheaded by its venture partner Paolo Cellini, who’s held senior positions at the likes of Microsoft and Disney.

“I am delighted that we have secured the services of Paolo and the wider MBooster team to support Defenx's growth aspirations,” said Defenx chief executive Andrea Stecconi.

“He brings extensive experience and a track record of supporting growing companies within and beyond Italy.”

MBooster will receive a semi-annual fee of €37,500, which will be paid out in new shares.

The partnership began on 1 January and can be cancelled with three months’ notice by either party, Defenx added.

Shares were up 2% to 92.5p in early trading on Tuesday.

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Tue, 03 Jan 2017 08:04:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/171083/defenx-brings-strategic-advisor-on-board-171083.html
<![CDATA[News - Defenx raises £1.52mln to accelerate mobile security software ]]> https://www.proactiveinvestors.co.uk/companies/news/167077/defenx-raises-152mln-to-accelerate-mobile-security-software-167077.html Defenx plc (LON:DFX) told investors it has raised £1.52mln of new capital as it works to accelerate the development of its mobile security software.

It is issuing 1.89mln new shares at an 80p placing price.

Some 1.64mln shares have been bought by existing and new institutional shareholders, while 250,000 shares were picked up by the company’s executive directors.

Andrea Stecconi, Defenx chief executive, bought 218,750 new shares to increase his holding to 21.2% of the company.

In a stock market statement, Stecconi said: “We are very pleased by the support shown by both existing and new shareholders in the placing.

“These funds will enable us to accelerate the development of our software, both to enhance existing products and to develop and test new products.

“These products are being developed in response to customer demand and this fund raising will ensure we can bring new products and features to the market quicker than previously envisaged."

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Fri, 07 Oct 2016 10:15:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/167077/defenx-raises-152mln-to-accelerate-mobile-security-software-167077.html
<![CDATA[Media files - Memopal buy a rare boost for Defenx plc, says finance chief ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/5358/memopal-buy-a-rare-boost-for-defenx-plc-says-finance-chief-5358.html Thu, 04 Aug 2016 06:22:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/5358/memopal-buy-a-rare-boost-for-defenx-plc-says-finance-chief-5358.html <![CDATA[News - Defenx acquires cloud-backup business ]]> https://www.proactiveinvestors.co.uk/companies/news/128887/defenx-acquires-cloud-backup-business-128887.html Defenx plc (LON:DFX) has announced a deal worth €2.34mln to acquire a majority stake in cloud-backup business Memopal.

The AIM quoted technology group, which specialises in security software for mobile devices, is acquiring a 95.2% stake in Memopal by paying up to €1.78mln and taking on €0.56mln of loans.

Initially, Defenx is paying €1.40mln in combinaton of cash (€440,000) and shares (worth €950,000 on August 1). A further €560,000 may be paid in shares by December 31 2017 subject to Memopal meeting certain earnings targets.

Defenx told investors the deal is line with strategy to diversify the company’s product portfolio and it is expected to be earnings enhancing, after sales and cost synergies, in the first full financial year.

Andrea Stecconi, Defenx chief executive, in a statement said: “This is an extremely exciting development for Defenx and Memopal.

“The bundling of Defenx's security software with Memopal's cloud backup and sync product offers a compelling proposition to channel partners and end-users alike.

“With Memopal's location at the heart of Pi Campus in Rome, the Group will gain access to a great pool of talent and ideas. We look forward to integrating Memopal's products, customers and team into Defenx to further deliver shareholder value."

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Tue, 02 Aug 2016 08:44:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/128887/defenx-acquires-cloud-backup-business-128887.html
<![CDATA[News - Defenx slightly ahead of expectations ]]> https://www.proactiveinvestors.co.uk/companies/news/124956/defenx-slightly-ahead-of-expectations-124956.html 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.

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Tue, 19 Apr 2016 09:42:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/124956/defenx-slightly-ahead-of-expectations-124956.html
<![CDATA[News - Defenx PLC launches Windows Phone 10 version of security app ]]> https://www.proactiveinvestors.co.uk/companies/news/124538/defenx-plc-launches-windows-phone-10-version-of-security-app-124538.html Defenx plc (LON:DFX) said its mobile security software suite is now available on phones using the Windows Phone 10 operating system.

The suite is already available for Android and Apple devices.

The company, which listed on Aim in December 2015, said Defenx Cloud Backup is also now available and further expands the product portfolio.

The cloud-based product offers online backup, synchronisation and sharing of files across multiple mobile and desktop devices. The suite of features, such as online-only access to free-up memory/disk space, unlimited version history and selective backup, is not available on many other competing products, Defenx said.

"These exciting new product launches illustrate our commitment to becoming the leading provider of mobile security software solutions across all operating systems. Following the launch of our Windows Phone 10 product, the Defenx Mobile Security suite is now available on over 90% of smartphone platforms," said Andrea Stecconi, chief executive of Defenx plc.

The shares, which floated at 148p, rose 1.5p to 126p on the announcement.

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Thu, 07 Apr 2016 10:22:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/124538/defenx-plc-launches-windows-phone-10-version-of-security-app-124538.html
<![CDATA[Media files - Smartphone security firm Defenx debuts on AIM ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/4431/smartphone-security-firm-defenx-debuts-on-aim-4431.html Thu, 03 Dec 2015 07:29:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/4431/smartphone-security-firm-defenx-debuts-on-aim-4431.html <![CDATA[News - UPDATE - Defenx rings up first day on AIM market ]]> https://www.proactiveinvestors.co.uk/companies/news/119980/update-defenx-rings-up-first-day-on-aim-market-119980.html --- ADDS SHARE PRICE ---

Mobile phone security software supplier Defenx is celebrating its first day on the London market.

Defenx (LON:DFX) has listed on AIM and raised £2.1mln before costs by placing about 1.4mln shares at 148p apiece, valuing it at £9mln.

The group plans to use the cash to fund the development of its Windows Phone 10 app and continue developing its mobile security suite for Android and Apple iOS.

It also wants to broaden its product range, including mobile device management for families and small businesses.

The fast-growing company hopes to expand rapidly in Africa, Asia and Latin America.

It aims to cash in on a world mobile security market that is tipped to be worth US$5.7bn by 2019.

Finance chief Philipp Prince told Proactive Investors in an interview: “It’s a very big market and we just need a small part of it.”

The group, which was founded in Switzerland in 2009, has been profitable since 2012 and is debt-free.

Trading in the nine months to September 30 was strong, with revenues up 86%.

Since it launched, the company has sold more than two million security software licences.

Its global distribution partners include 3Italia (H3G), the third largest Italian mobile network operator; disk drive manufacturer Seagate Technology and further distributors including telecoms operators, systems integrators and manufacturers.

Managing director Guido Branca said the company expected to double in size every year.

He said there was a lot of takeover activity in the sector at the moment, focusing particularly on mobile phone privacy as well as security.

“I think that will create opportunities for us,” he said.

The company’s nominated adviser is Strand Hanson and its broker is WH Ireland.

Shares traded as high as 151p on Thursday, and were 1p higher at 144p near the end of the day.

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Thu, 03 Dec 2015 07:15:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/119980/update-defenx-rings-up-first-day-on-aim-market-119980.html