Crossword Cybersecurity PLC (AIM:CCS) doubled revenue in the first half of 2022, helped both by organic growth and acquisitions.
A growing need for organisations to protect themselves against cyberattacks is behind the growth, the AIM-listed company said, adding it is on target for a 75% improvement over the full year.
Organic revenue grew by 53% in the first half of 2022, while in March it made its fifth acquisition with the purchase of Threat Status.
Threat Status has now been integrated, it added, with its core product Rizikon, which assesses online risks in the supply chain, on track to achieve 1,000 users by the end of 2022, up from 500 at the end of 2021.
Recurring revenues since the end of 2021 have risen by 48% to £1.97mln, it noted.
“Crossword is operating in a sector where spending is not discretionary, in a growing market with increasing demand for cybersecurity, as evidenced by our strong and growing recurring revenues," said Tom Ilube, chief executive.
“We see significant opportunities in improving operational efficiency as Crossword's revenues continue to grow and the cost base can be spread against higher revenues”.
Crossword added it had decided to spend £500,000 on expansion into Singapore and on beefing up its sales and marketing arm, which will have an impact on pre-tax losses.
Holders of £700,000 out of a total of £1.4mln convertible loan notes that expire in December 2022 and January 2023 have also agreed to extend the maturity date until June 2025, with two increasing their loans by £150,000.
The conversion price is also being adjusted to 25.2p.
CEO Ilube also intends to extend his holding of £250,000 loan notes on the same terms, said the statement.