Crossword Cybersecurity PLC (AIM:CCS)'s CFO Mary Dowd spoke with Thomas Warner from Proactive London, providing an update on the company's trading for the calendar year 2023. Despite not meeting its revenue target, Crossword Cybersecurity demonstrated resilience and growth potential in a challenging economic environment.
Thomas Warner (TW): Welcome, Mary. Let's discuss the recent trading update. How has the year been for Crossword Cybersecurity?
Mary Dowd (MD): Good morning, Thomas. The year has indeed been challenging. While we expected to hit £6 million in revenue for FY 2023, we're now projecting revenues between £4.1 and £4.3 million. This is a 15% growth over FY 2022, which, although below our target, still represents significant growth, especially considering the broader market context where many competitors are facing flat growth.
TW: What factors contributed to the slower-than-expected revenue growth?
MD: The economic climate has been tough, particularly for B2C organizations. We've seen a general trend across industries where companies are reassessing their expenditures. Despite these challenges, cybersecurity remains essential. Our pipeline remains strong; however, the conversion rate of this pipeline into actual revenue has been slower than anticipated. We're beginning to see these conversions pick up now, which is a positive sign for the next financial year.
TW: Looking ahead to 2024, what are your predictions and goals?
MD: For FY 2024, we're expecting to achieve strong revenue growth, projecting around £7 million. This optimism is based on the current conversion of our pipeline contracts. Additionally, we aim to reach EBIT and cash breakeven on a monthly basis in the second half of 2024, a significant achievement for Crossword.
TW: It sounds like you have a clear understanding of the challenges and a plan to address them. What makes you confident in your projections for 2024?
MD: Our confidence stems from the resilience of our pipeline and the increasing conversions we're witnessing. Cybersecurity continues to be a non-discretionary spend for businesses, and our services remain in demand. The adjustments we're making now are setting us up for success in the coming year.
