We expect the momentum achieved in [the first half] to continue, with our focus on scalable, recurring product revenue, through conversion of pipeline into orders.
Tom Ilube, chief executive
What it does
The group currently has two main products, Rizikon Assurance, a risk assessment tool that helps companies evaluate their suppliers and other third parties, and Nixer, a machine-learning-based cybersecurity tool, which is scheduled for release at the end of 2019.
How it’s doing
For the six months ended 30 June, Crossword reported that revenues had risen 5% to £570,757, boosted by a 21% increase in sales from its product and consulting arm.
Pre-tax losses widened to £1.07mln from £823,679 in the half-year, which the company attributed to investments in marketing and product development.
Crossword also said orders for Rizikon had almost doubled in the first half, and that it remained confident full-year results would be “in line” with market expectations.
The group added that it was close to agreeing “one or more” distribution deals over the coming months.
In a trading update in late-October, Crossword said underlying current trading was "still broadly in line with expectations" and the outlook remained strong with its pipeline having doubled since the beginning of the year
- Rizikon security is to be offered to customers of Corssword's larger rival, NCC Group PLC (LON:NCC), following a collaboration between the two firms
- The firm has signed a new partnership with Leonardo MW Ltd, the UK wing of Italian defence giant Leonardo-Finmeccanica which has a burgeoning division that advises customers on the risks of cyber breaches
- In October, the company said it had signed a two-year contract for Rizikon Assurance with a FTSE 250 chemicals firm to assess its strategic suppliers
- In early September, Crossword launched the second iteration of its Rizikon Assurance platform, providing improved visualisation for customers of all risks for each third-party through fully customisable at-a-glance supplier scorecards
Interview: chief product officer Jake Holloway
What the boss says:
"I am very pleased with the progress achieved in the first half of 2019, with a significant rise in the order book and pipeline for both Rizikon Assurance, and Consulting. We expect the momentum achieved in [the first half] to continue, with our focus on scalable, recurring product revenue, through conversion of pipeline into orders," said Tom Ilube.
With the shares trading at around 485p as of 13 November 2019, Crossword carries a market cap of £22.1mln.