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The Markets
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The Markets
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Tech

Falanx boosted by contract wins and renewals, eyes CBIL funds

The cybersecurity group highlighted "continued contract momentum".

Falanx Group Ltd (LON:FLX) shares advanced in Friday morning’s deals as it announced new contract wins and renewals.

The cyber security firm said its new customers spanned a range of sectors including charity, financial services, pharma, defence and IT.

It noted that the deals were achieved through a combination of direct and indirect sales including the SolarWinds and Trustmarque partnerships.

Falanx added that it has maintained a strong performance in its penetration business and its materially above the pre-coronavirus pandemic run-rate.

The total value of the contracts is in excess of £700,000, with £400,000 will benefit the 2021 calendar year.

The company said it continued a solid profitable performance in its Assynt Strategic Intelligence division and it remains in-line with management expectations. Assynt highlighted it landed a renewal with an existing client, one of the world's largest technology companies, for £1.2mln for three years.

"I am pleased with the continued contract momentum in both of our divisions,” said Falanx chief executive Mike Read in the trading statement.

Additionally, Falanx said that it is in talks with a specialist lender for the provision of a UK Government-backed CBIL loan.

The company said the loan would allow it to make earnings enhancing acquisitions that enhance its core Cyber division, as well as supporting organic growth.

In order to qualify, it will need to carrying out a capital reconstruction by reducing the share premium account, to decrease the deficit on retained earnings.

Read added: “We will look to progress the CBIL opportunity and will update the market at the appropriate time as we see this as a strategy which can further support equity growth by enabling earnings enhancing acquisitions."

Falanx shares gained 11.6% to change hands at 1.34p.

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