Crossword Cybersecurity PLC Trading Update and Financing (0207R)
October 24 2019 - 4:16AM
UK Regulatory
TIDMCCS
RNS Number : 0207R
Crossword Cybersecurity PLC
24 October 2019
Trading Update and Financing
24 October 2019 - London, UK - Crossword Cybersecurity Plc
(AIM:CCS, "Crossword", the "Company" or the "Group"), the
technology commercialisation company focused solely on cyber
security and risk, provides an update to trading and financing.
Trading for 2019 is broadly in line with expectations. As a
result of recent changes in accounting practices relating to IFRS15
in respect of recognition of revenues from the Company's Software
as a Service ("SaaS") contracts that have recently become clear,
the level of revenue reported for the year to December 31, 2019
will be below current market expectations. However, due to these
changes, there will be a corresponding increase in revenue in
future years. There is no impact on cashflow. The effect on the
balance sheet is to increase deferred revenue.
With an increase in SaaS contracts recently signed and
anticipated, Crossword undertook a review of its revenue
recognition practices. This review recommended an accounting policy
change, that will impact the revenue reported in the current
financial year and defer part of it to the following year. A prior
year adjustment is not required.
Additionally, subject to shareholder approval, Crossword is
moving forward with entering into loan agreements of GBP1m, having
GBP1m committed from third parties and current shareholders and
Directors, to satisfy the Company's near to mid-term cash
requirements. The funds will be made available for general working
capital purposes. The loan terms include interest at a fixed rate
of 12 per cent per annum, an equity element and a term of 3
years.
Tom Ilube, Chief Executive Officer, commented:
"Underlying current trading is still broadly in line with
expectations and the outlook remains strong with the pipeline
having doubled since the beginning of the year, as we reported
recently. However, as a result of accounting policy changes we will
be reporting revenues for the current year below market
expectations. In addition, the Board is pleased to confirm our
plans to raise the required GBP1m of working capital in the most
efficient way as proposed loans. I am encouraged by the level of
support we have received for the proposed fundraising, the
necessity of which was communicated to investors in our interim
results published on September 23. We look forward to providing
further updates in due course."
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Contacts
Crossword Cybersecurity plc - Tel: +44 (0) 20 3953 846
Email: info@crosswordcybersecurity.com
Tom Ilube, Chief Executive Officer
Mary Dowd, Finance Director
Grant Thornton (Nominated Adviser) - Tel: +44 (0) 20 7383
5100
Colin Aaronson / Jamie Barklem / Niall McDonald
Hybridan LLP (Broker) - Tel: +44 (0)203 764 2341
Claire Louise Noyce
For media enquiries contact:
Lorena Duke, GingerPR
lorena@gingerpr.co.uk, 01932 485 300
About Crossword Cybersecurity plc
Crossword Cybersecurity plc focuses on the development and
commercialisation of university research-based cyber security
related software and cyber security consulting. The Group's
specialist cyber security product development and software
engineering teams work with its university partners to develop the
research concept into a fully-fledged commercial product that it
will then take to market. The Group's aim is to build up a
portfolio of revenue generating, intellectual property based, cyber
security products. Rizikon Assurance, Crossword's leading product,
is a SaaS platform that enables medium to large companies to assess
the cyber maturity and GDPR readiness of their suppliers.
Crossword's team of expert cyber security consultants leverages
years of experience in national security, defence and commercial
cyber intelligence and operations to provide bespoke advice
tailored to its clients' business needs.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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