Third Quarter 2017 Report,Year on Year Revenue Growth and Second Acquisition Completed
Cognosec AB (Publ) (“Cognosec” or the “Group”) announces today its third quarter interim report for 2017, which can be found here.
Total year to date revenues grew 4.8% to 10.9m EUR (Q3 YTD 2016: 10.3m EUR). This, combined with a lower cost of sales, demonstrated improved margins compared to the third quarter of 2016. Total Gross Profit for Q3 2017 increased 5.6% from 1.2m EUR (Q3 2016) to 1.3m EUR (Q3 2017). There were a number of key contracts that did not close in time for Q3 in Africa and the Middle East and it is our and our clients’ intent to have these completed by the end of the financial year.
Streamlining operations, to increase efficiencies have reduced costs across the Group by 633k EUR (23.11%) compared to the previous quarter. Efforts to ensure that investment and expenditure are harnessed to their greatest effects across the Group are underway. Planned shortfall in margins stretched the Group’s cash position, pending debtor collections and unwinding of deposits. The overall Group loss for YTD Q3 2017 -2.7m EUR (YTD Q3 2016: -1.23m EUR). In addition to the above, Cognosec AB formally announced the completed acquisition of Intact Software on the 22nd of September.
- Group Revenue of 3.34m EUR for Q3 (Q3 2016: 3.23m EUR), an increase of 3.39%
- YTD Group Loss of -2.7m EUR (YTD 2016: loss -1.8m EUR)
- Group Gross Margin for Q3 2017 was 39.1% (Q3 2016 Gross Margin: 38%)
- The Group employed 140 staff at the end of Q3 2017, up 31% compared to Q3 2016 (107)
- Beyond the quarter period, Cognosec AB announced a private placement of shares for 800k EUR, to strengthen the Group’s working capital position.
Mangold Fondkommission AB is the Company’s Certified Adviser.
Telephone: +46 (0)8 5030 1550
FOR FURTHER INFORMATION, PLEASE CONTACT:
Tim Metcalfe / Miles Nolan
IR-contact, Cognosec AB
This information is information that Cognosec AB is obliged to make public, pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on 31st September, 2017, after 17.30 CET.
Cognosec AB (publ) is engaged in providing cyber resilience solutions and in cyber-attack prevention. The business conducts international operations from offices in Sweden, South Africa, the UK, Kenya, Germany, Austria and the United Arab Emirates. Listed on Nasdaq First North (Nasdaq:COGS), Cognosec delivers services and bespoke technologies to enhance public and private sector organisations’ protections against unwanted intrusions and designs holistic, organisation-wide solutions to prevent diverse and increasing forms of information and identity theft. Cognosec had revenues of EUR14.64m in 2016 and employed 140 personnel at the end of Q1 2017. For further information, please visit www.cognosec.se