Crossword Cybersecurity PLC shares were up on Thursday, after it said revenue in the first half of the year rose by more than a quarter annually.

London-based Crossword Cybersecurity works with UK universities to provide cybersecurity solutions. Its shares were up 7.7% at 7.00 pence each on Thursday afternoon.

Crossword Cybersecurity said it expects to report revenue of £1.9 million in the six months ended June, up 27% from a year prior.

It said there has not been a slowdown in cybersecurity spending among its core regulated and critical national infrastructure clients in the first half of the year.

Revenue growth was experienced across all revenue lines and annual recurring revenue at the end of the period was £2.7 million, up 35% compared to the same period in the prior year, the company said.

Consequently, Crossword expects to meet market expectations for full-year revenue. Looking further ahead, it eyes a revenue growth rate of 30% for 2024 and aims to deliver earnings before interest, tax, depreciation and amortisation and cash breakeven on a monthly basis during the second half of 2024.

Crossword added that its overall gross margin improved by four percentage points in the first half of the year and its administrative expenses have stabilised. ‘Consulting margin continues to improve as revenue scales to achieve critical mass,’ it explained.

Also on Thursday, Crossword announced that it has entered into an agreement for a five year, unsecured, convertible loan up to the value of £2.0 million.

The funds raised will be used to support sales and marketing, product and services development and to provide general working capital.

Chief Executive Officer Tom Ilube said: ‘As the economic landscape continues to be challenging for many, Crossword is fortunate to be operating in the cyber security sector where client spend has held up well in the first half of the year. In an environment of increasing number and complexity of cyber-attacks, Crossword’s business model centred around specialist cyber security products and services with distinct USPs and a strongly growing Consulting division, saw continued strong revenue growth in the first half of 2023.’

Copyright 2023 Alliance News Ltd. All Rights Reserved.