Proactive Investors - In the first half of 2023, Crossword Cybersecurity PLC (LON:CCSC) shifted its focus from acquisitions and team growth to laying the foundations for a profitable enterprise in the coming years.
Regarding raw numbers, group revenues in the six months ended 30 June 2023 grew 27% year on year to £1.9 million, with annual recurring revenues growing by 35% to £2.7 million.
All revenue lines experienced strong year-on-year growth, with margins improving from 16% to 20%.
Though post-tax losses ticked up from £1.9 million to £2.5 million due to certain administrative and financing costs, Crosswords’ strong sales pipeline and cost base reduction are expected to drive the group to an EBITDA and cash breakeven in the second half of 2024.
Crossword is aiming for a 30% revenue growth rate in 2024 to achieve approximately £8 million on the top line.
“2023 is shaping up to be another year of strong growth for Crossword with a pipeline of opportunities to drive revenue in the second half of 2023,” stated chief executive Tom Ilube.
"As the economic landscape continues to be challenging for many, Crossword is fortunate to be operating in the cybersecurity sector where client spend has held up well in the first half of the year.
“During this period, we have made significant progress on our path to profitability and continue in our mission to reduce cyber risks for our clients by providing a portfolio of innovative products and services.”
Ilube also expressed excitement at the potential applications for large-language models and generative AI in the cybersecurity industry, ergo Crossword is exploring initiatives with industry partners and academics in the field.
“It is extremely challenging for any single company to keep track of and evaluate the many applications that are emerging, so Crossword is looking to bring together its major clients to engage with this exciting area,” he said.