Crossword Cybersecurity PLC (LON:CCS) has agreed to raise £1mln in loans to boost working capital and provided an update on trading following an increase in software as a service (SaaS) contracts.
After winning more SaaS contracts and with more in the pipeline, the cyber security and risk specialist recently carried out a review of its revenue recognition practices.
This review recommended a change in accounting policy, which will mean the revenue for the current calendar year will be below current market expectations, moving a portion of revenue to the coming year where there will be a corresponding increase.
A prior year adjustment is not required.
“Underlying current trading is still broadly in line with expectations and the outlook remains strong with the pipeline having doubled since the beginning of the year,” said chief executive Tom Ilube.
The £1mln of new working capital, raised from loan agreements committed by third parties, current shareholders and directors, will satisfy the company's “near to mid-term cash requirements”.
Having flagged the need for this cash in the half-year results last month, Ilube said the loans were “the most efficient way” to drum up the money.