Risk Intelligence A/S increases its revenue by 16% in Q1 2020
Risk Intelligence A/S (“Risk Intelligence”) announces today that the Company has increased the revenue by 16% in Q1 2020 compared to Q1 2019 in a very difficult situation.
Risk Intelligence has increased its revenues by 16% in Q1 2020 (DKK 3,708,158) compared to Q1 2019 (3,199,850 DKK). Sales have been derived from both existing as well as new commercial and governmental clients.
CEO Hans Tino Hansen says
“The 16% growth in revenue in Q1 2020 is significant as it is derived in a very difficult business environment of increasing uncertainty especially during February and March due to the impact of COVID-19 on both clients, potential clients, partners and our providers. In January we saw a quite significant 204% growth in revenues compared to January 2019, a 51% decrease in revenues in February, when the impact from COVID-19 started in Asia and elsewhere, and a more modest 9% decrease in March. With the signals of a more challenging business climate we early initiated a revision of the budget with a significant reduction in planned growth in revenue as well as significant cost savings into a new budget for 2020 that is stil balanced with a planned positive EBITDA under the current assumptions. The cost savings are designed to preserve the organisation and continue to deliver the same high level of quality to our clients”.
COVID-19 impact on Risk Intelligence’s operations
The impact of COVID-19 on Risk Intelligence’s own operations is insignificant as a large part of the global staff are normally working from home or are used to having to do so. Everyone is used to online meetings and remote collaboration. Furthermore, all data-, administrative-, financial- and operational systems are online and can be accessed remotely. Risk Intelligence has worked in an online environment connecting staff members in Europe, Asia, Middle East, Africa and North America since its very start. However, while the ban on travelling obviously has an impact on both future sales and offsite consultancy projects, it has been partly replaced by an increased online meeting activity. As an example, all client seminars are being replaced by online seminars.
COVID-19 impact on Risk Intelligence business
Importantly, security intelligence is still needed, and the threat and risks related to security do not decline because of COVID-19, this results in a constant demand that places Risk Intelligence in an a-cyclical position in the market. Our experience from global financial crisis in 2008/2009 and from the shipping crisis in 2015/2016 was that, due to Risk Intelligence’s close relation with its clients, the result at the end of the year was unchanged or even with a growth compared to the previous year. It is difficult to assess if this will be the case for 2020 and revenue expectation has been reduced significantly in the revised 2020 budget.
It is too early to make any more precise conclusions on the overall impact on business as all of our clients still have a need for our services, but their own operations and organisations are feeling the impact from COVID-19. The current situation is too complex and the implications for the World economy are still unknown and hence it is not possible to forecast the total impact on Risk Intelligence during 2020. However, due to recurring revenue from existing license agreements and framework agreements for 2020 as well as sales in Q1 known revenue for 2020 as of 6 April 2020 is about 14M DKK, which forms a solid basis for the revised budget and subsequently also for continued growth compared to 2019.
With a more balanced revenue to cost and investment ratio during 2020 fewer capital reserves are needed in 2020 than in 2019. Due to the uneven distribution of revenues across the year and the even distribution of the costs, the management of Risk Intelligence makes sure to have the company fully funded at any time according to plans.
The full Q1 2020 report will be published 20 May 2020.
This information is information that Risk Intelligence A/S 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 below, on 6 April 2020.
For further information about Risk Intelligence, please contact:
Hans Tino Hansen, CEO
Jens Krøis, CFO
Telephone: +45 7026 6230
E-mail: investor@riskintelligence.eu
Web page and social media:
Web page: www.riskintelligence.eu
Twitter: www.twitter.com/riskstaff
LinkedIn: www.linkedin.com/company/risk-intelligence
Facebook: www.facebook.com/riskstaff
Risk Intelligence A/S was founded in 2001 by Hans Tino Hansen. The company has evolved to become a prominent company in security risk management by delivering threat and risk assessments worldwide. Risk Intelligence operates and assists customers and partners from headquarters located north of Copenhagen, the office in Singapore as well as through representatives in Europe, Asia and North America. The business has been designed with international scalability in mind and the company is globally regarded as an expert in its field. Risk Intelligence provides the ‘Risk Intelligence System (MaRisk + PortRisk + LandRisk)’ which is a digital platform that allows clients to monitor global security risks and enables them to plan and implement missions in risk areas. Risk Intelligence is listed on the Spotlight Stock market [RISK].