Crossword Cybersecurity PLC (LON:CCS) has said it is cautiously optimistic of hitting full-year targets after a first half that saw revenues rise 43% year-on-year.
The cyber-security company acknowledged there is a lot of uncertainty over the outlook for the rest of the year, particularly with the probable ending of employee furlough schemes, but said full-year results should be in line with market expectations if it can get a few major product bids over the line in the next few months and continue to convert its healthy prospects pipeline into sales.
For the first six months of 2020, the company expects to report revenues of £674,000, up 18% on the first half of 2019. The group ended the reporting period with cash of £1.6mln, with funds boosted by May’s £1mln fundraising.
READ Crossword Cybersecurity launches professional edition of Rizikon product for SMEs
The coronavirus (COVID-19) pandemic, Brexit and “a host of Environmental, Social and Corporate Governance (ESG) matters”, have highlighted weaknesses within supply chains, raising awareness of the financial, regulatory, and reputational risks organisations indirectly carry, Crossword noted.
The launch last month of Rizikon Pro – an oven-ready software-as-a-service product that allows smaller firms to access supplier assurance features at a lower cost – is expected to drive a reduction in the sales cycle timescales, as the technology is offered on a pay-as-you-go basis.
“With the end of the furlough scheme likely to have widespread impact across the business sector and the shape of the economic recovery still unpredictable, the second half of 2020 is difficult to forecast. As things stand, Crossword has secured contracts worth more than 50% of the revenue required in the second half of 2020 to achieve results in line with market expectations.
"With a healthy pipeline, there is cautious optimism of delivering on the market expectations, although this depends on the outcome of several large bids that are currently in progress,” the group said in the trading update.
