Falanx Group Limited
("Falanx" or "the Company")
Directorate Change, Post Period-end Trading Update and Notice of Results
Appointment of CEO and Main Board Director
Falanx Group (AIM:FLX), the global intelligence, security and cyber defence provider, is pleased to announce the appointment of Stuart Bladen as Chief Executive Officer with immediate effect. Falanx also today provides an update on its trading for the six months ended 30 September 2016.
Appointment of Stuart Bladen
Stuart has a deep understanding of the Cyber Security industry, in particular the arena of consulting and managed security services. As Executive Chairman of Vistorm Limited, Stuart doubled the company's size to 400 staff and annual turnover of £120m. Vistorm was a provider of consulting, managed security services and network solutions to companies needing a specialist security partner and is now HP Information Security UK Ltd, part of the Hewlett Packard group. Stuart's past track record also includes leadership roles at Hewlett Packard as Vice President of UK Public Sector and for the Middle East, Mediterranean and Africa, where he managed a US$2Bn+ turnover operation. In addition he has held senior roles at EDS, Hitachi, Unisys and PwC where he led teams of up to 18,000 people with business units delivering revenue of more than US$3Bn.
Stuart joins Falanx with a view to further driving cyber security and intelligence opportunities, as the Company builds on the momentum achieved following the streamlining of operations earlier this year. A key focus for Stuart will be to ensure that the Company continues to take advantage of the growing opportunities across the cybersecurity and intelligence markets and further develop its enlarged product suite, which was enhanced by the acquisition of Advanced Security Consulting Limited ("ASC") in May 2016.
As part of these arrangements, John Blamire steps down as CEO but will continue to serve on the Board as an executive director, working alongside Stuart to play a significant role in developing new markets, strategic opportunities and assist in the further development of the Company's core offering.
Trading for the six months to 30 September 2016 was in line with management expectations with revenue for the period of £1.22m, which is an increase of 54% compared to revenues achieved for the same period last year. During the period, the Company continued to focus on developing core cyber security skills to address the significant market opportunities. Furthermore, the Company has now successfully integrated the recent acquisition of ASC.
The Company benefited from increased revenue as it secured long-term contracts with blue chip businesses and governments worldwide. The Company's sales mix has benefited from a significant increase in Cyber Security services and a very solid half year in Intelligence services.
Segmentally, revenue for the six months to 30 September 2016 was as follows:
- Intelligence revenue for the period of c.£0.9m, an increase of 17% compared to revenues achieved for the same period last year
- Cyber revenue for the period of c.£0.33m, an increase of 1130% compared to revenues achieved for the same period last year and reflects that this unit is now contributing to the overall business after its start-up investment period.
Post Period End
On 3 October 2016, the Company announced it had successfully strengthened its balance sheet through an equity placing to raise £0.75m (gross) and the early redemption of outstanding Loan Notes held by Darwin Capital Ltd. A final repayment of £577,500 has been made to Darwin Capital Ltd.
Following the successful acquisition and integration of ASC, Falanx now provides a full range of Cyber Security managed services, including risk assessment, consulting, monitoring and response. Moving forward, the Company will be able to offer a wider suite of managed solutions to a greater range of customers, as it takes advantage of the increasing number of opportunities across the global cyber security market.
There is now significant scope to rapidly scale the business across the Company's target markets with the contracts generated to date, demonstrating both the capabilities of the refocused business and providing a strong financial foundation for future profitable growth.
Notice of Results
The Company will announce its results for the six month period ending 30 September 2016 on Tuesday 01 November.
Appointment of Joint Broker
The Company announces the appointment of Whitman Howard Limited as joint broker with immediate effect.
Chairman of Falanx, Mike Read said: "On behalf of the Board and the Company, I am delighted to welcome Stuart to Falanx. Our strategy of focusing on cyber defence and intelligence continues and we are pleased that our recent acquisition of Advanced Security Consulting Limited is proving successful. As announced today, Falanx has traded strongly in the first half of the current year and we look forward with confidence. I also want to thank John Blamire for his significant contribution as the founder and CEO of Falanx Group over more than 4 years. It is a testament to the efforts and John and the team at Falanx that we have built a company that can attract, in Stuart, an individual with extensive experience and an exemplary track record in the Cyber Security industry. I look forward to working with both Stuart and John in the next phase of Falanx's growth."
Additional information: disclosures required pursuant to Rule 17 and Schedule 2(g) of the AIM Rules for Companies ("AIM Rules")
Peter Stuart Andrew Bladen, age 54, is currently a director of Stuart Bladen Limited. Mr Bladen has also served as a director of the following companies within the last five years:
Hewlett Packard Enterprise Services Limited
Hewlett - Packard Limited
Injazat Data Systems Limited (Abu Dhabi)
There are no further disclosures to be made in accordance with Rule 17 and Schedule Two paragraph (g) of the AIM Rules.
Falanx Group Limited
Stuart Bladen, Chief Executive
via Walbrook PR
Panmure Gordon (UK) Limited
Nominated Adviser & Joint Broker
Andrew Godber / Peter Steel
+44 (0) 20 7886 2500
Whitman Howard Limited
Nick Lovering / Francis North
+44 (0) 207 659 1234
Walbrook PR (Media and Investor Relations) Paul Cornelius / Nick Rome
+44 (0) 207 933 8780
Falanx Group Limited, is a global intelligence, security and cyber defence provider working with blue chip and government clients. The Group listed on AIM in June 2013 under ticker FLX For more information: http://www.falanxgroup.com/
This announcement contains inside information for purposes of Article 7 of Regulation (EU) No 596/2014
This information is provided by RNS