Crossword Cybersecurity PLC (AIM:CCS) said it is on course to break even in the second half of its next fiscal year and it is looking for partners to help utilise the benefits of generative artificial intelligence (AI) in its products.
Tom Ilube, chief executive, said he was excited about the opportunities with AI and LLMs (Large Language Models), adding that “Crossword is fortunate to be operating in the cyber security sector where client spend has held up well in the first half of the year".
Sales currently are growing at around 30% annually, he said, with revenues in the six months to end June up by 27% to £1.9 million and with no sign of any slowdown in demand on cyber security spending among its core regulated and critical national infrastructure customers.
“Strong revenue growth was experienced across all revenue lines”, he added.
Annual recurring revenue (ARR) at the end of the first half was £2.7 million or up 35% on a year ago helped by cross-selling with its software engineering arm.
Gross margin increased by 4 percentage points, said the statement, with overheads also now stable and admin expenses as a percentage of sales forecast to halve in 2024.
For the full year, revenues are expected to hit £6 million and rise by 30% to around £8 million in 2024 when AIM-listed Crossword expects underlying profitability [EBITDA] and cash breakeven on a monthly basis during the second half.
Crossword has also issued £2 million worth of convertible loan notes to get to that point and support sales and marketing, product and services development and to provide general working capital.
Ilube added: “In an environment of increasing number and complexity of cyber-attacks, Crossword's business model centred around specialist cyber security products and services with distinct USPs and a strongly growing consulting division, saw continued strong revenue growth in the first half of 2023.
"2023 is shaping up to be another year of strong growth for Crossword, and we are forecasting continued growth into 2024, with revenue growth of 30% to circa £8m."