Fourth Quarter, 12 Months Report 2016:Continued sales growth and pipeline development
Cognosec AB (publ) (“Cognosec” or “The Company”), a leading supplier of solutions within Cyber Security with operations in Europe, Africa and the Middle East, today announces its fourth quarter and twelve month report for 2016.
The Fourth Quarter showed a 32% increase in revenues compared to the previous quarter, from EUR 3.23m to 4.28m. The newly created European businesses saw revenues of EUR 547k compared to EUR630k. Continued investments in resources and headcount were made to build the business and meet demand. Headcount 108 versus 83 previous year.
- Revenues grew to EUR 4.28m up 32% compared to previous quarter
- European operations revenue generation: EUR 530k (Q4 2015: nil)
- New business in South Africa grew 289%, adding to future renewal rates
- Gross profit margin for the quarter was marginally down 42% (Q4 2015:47%)
- Resources and headcount grew substantially to build the business and meet demand
- Quarterly underlying operating loss, excluding new European entities: EUR 456k (Q4 2015 profit: EUR731k)
- FY Group Operating loss, including new European entities: EUR 2.71m (2015: profit EUR 1.86m)
- Quarterly loss per share amounted to EUR -0.0048 (Q4 2015: EUR 0.00027)
- The Group employed 108 (83) people at the end of the period, up 30 %
- The Group remained debt free and had EUR 1.36m in cash and cash equivalents at the end of the period
This report is published in English only, and going forward Cognosec AB will publish all of its quarterly reports in English.
Cognosec enters exclusive agreement to acquire UK-based A-tek Distribution Limited
Cognosec AB (publ) (“Cognosec” or “The Company”), (Nasdaq: COGS), a leading supplier of cyber security solutions with operations in Europe, Africa and the Middle East, has signed an exclusive agreement with A-tek Distribution, a UK-based company specialising in the sale and digital distribution via innovative portal technologies of cybersecurity solutions, products and services. The acquisition is in line with Cognosec’s strategy to expand business areas to cover the sale and distribution of software technologies over the internet.
This press release includes inside information of Cognosec AB (publ) (“Cognosec” or “The Company”) that has been subject to postponement of disclosure. The disclosure of inside information was postponed on December 8, 2016 under Article 17 (4) of Regulation (EU) No 596/2014 (Market Abuse Regulation).
Cognosec AB today announces the signing of Heads of Terms of Agreement pursuant to the acquisition of A-tek Distribution, which is expected to close in Q1, 2017 subject to legal, financial and technology due diligence exercises.
A-tek Distribution was founded in 2009, and is a United Kingdom registered company. The transaction will include the acquisition of 100% of outstanding shares for a consideration of approximately €275,000[1]comprised of c€44,000 cash and €231,000 Cognosec AB new issue shares. The transaction will be completed by Cognosec AB subsidiary, Credence Security. There will be no other impact on Cognosec AB’s balance sheet.
A-tek Distribution is a specialist Digital Software Distribution Business, distributing cyber security solutions by portal and established by pioneers of digital software distribution who between them, possess over 85 man years of digital software distribution. A-tek is positioned as a New Age Distribution Business, enabling global access to the vast SME markets with Pay-as-you-Use and Software-as-a-Service cyber security solutions. The technology platform provides significant scalability and global advantages through innovative distribution methodologies.
A-tek Distribution recorded revenues of EUR101 510 2[2] in FY2016 and EBITDA of EUR 48 5602.
The acquisition of A-tek improves Cognosec’s competitive advantage for both vendors and customers alike. This addition also expands Credence Security’s current product portfolio to incorporate cyber security solutions for secure operation centers, network operation centers, datacenters, mobile platforms, virtualized environments as well as providing critical fraud prevention solutions into the technology, media, telecommunications, financial and public sectors.
Commenting on the acquisition of the business by Cognosec AB, Robert Hall, A-tek Distribution’s Co-founder, says that – “It will allow the Company to fast track the overview above, whilst working together with a globally recognized provider of cyber security excellence to secure additional distribution agreements giving our current and future partners tremendous platforms for future growth, productivity and profitability.”
Robert Brown, CEO of Cognosec AB commented – “We are delighted to broaden and deepen our business in line with our strategies through the acquisition of A-tek, a highly respected and experienced team. Through A-tek, Cognosec will be extending its customer base with the addition of web-based digital distribution portals covering existing and new segments of this growing market. Cognosec recognizes the expansion of distribution of cyber security software through innovative portal solutions providing products and services with a strong emphasis on the SME markets as our strategic focus.”
[1] The transaction will complete in GBP so the approximation is for the GBP:EUR exchange rates which were taken at mid-market on 23th January 2017, 1GBP=1.158EUR.
[2] A-tek Distribution Limited uses GBP as reporting currency. The approximation is for GBP:EUR exchange rates which were taken at mid-market on 23th January 2017, 1GBP=1.158EUR.
Cognosec signs Cybersecurity deal in South Africa
Cognosec AB (publ) (“Cognosec” or “The Company”), Nasdaq: COGS, a leading supplier of solutions within Cyber Security with operations in Europe, Africa and the Middle East, has signed an agreement with a major South African financial institution for delivery of Cybersecurity solutions and services for an ordervalue and revenue in 2016 of around ZAR 13 M, corresponding to EUR 0,9M*.
This contract is one of two contracts mentioned in the Company´s interim report for the third quarter that originally was anticipated to materialize during the third quarter 2016.
The contract, which covers an initial program, is over three years, and confirms the Cognosec Group’s mission to build profitable long-term relationships with its customers and points to the growing importance of Cybersecurity. Demand for network security services is ever increasing, as cybercrime becomes an issue that all companies and organisations worldwide have to protect themselves against.
A specialist in Cybersecurity and the market leader in Africa, Cognosec is perfectly placed to provide the solutions sought out by large organisations and financial institutions anywhere in the world. This contract is reflective of the company’s prestigious and growing customer base and underlines how the market values Cognosec services.
– We are delighted to broaden and deepen our business relationship with a very valued and respected customer,” said Robert Brown, CEO of Cognosec AB. “No leading financial institution can afford to take risks when it comes to protecting its assets. That’s where Cognosec comes in – to align technical expertise, skilled employees and our extensive experience to create an effective and fail-safe Cybersecurity environment.
* Based on current exchange rates.
Cognosec AB signs Primary Partner deal with Cyber Essentials Direct
Cognosec AB (Nasdaq: COGS), a leading global cyber security specialist, has today announced its new deal to become a primary partner of Cyber Essentials Direct Ltd – owners of The Cyber Highway - a unique online portal that provides companies with a cost-effective and efficient route to successful implementation of the UK Government’s Cyber Essentials Certification scheme. This will see Cognosec AB become a valuable source of advice and support for businesses of all sizes, no matter where they are located, that are looking to achieve Cyber Essentials and Cyber Essentials Plus certification.
The Cyber Highway is an online portal that delivers three vitally important solutions to help secure business communities against the Tier 1 threat of cyber-attack:
- For the first time, it provides large enterprises with an online cyber security management tool that has been accredited to implement the UK Government’s CE Scheme. Crucially, it offers real-time monitoring of the cyber resilience of their suppliers that sign-up to achieve CE certification in order to meet Government contractual requirements. It also provides large multi-national companies with a tool that they can use themselves to check their own compliance against CE and CE+ standards.
- For SMEs, it offers a user-friendly and low-cost solution to achieving CE certification – saving companies that lack in-house technical security expertise, significant expense. The Cyber Highway does this by providing built-in guidance and help through every step of the process with costs identified upfront so that companies know what they are committing to financially.
- The Cyber Highway is the only scalable online solution that can meet the demands imposed by UK Government – to see thousands of vulnerable companies going through the certification process in order to help secure supply chains that are servicing the Ministry of Defence and other key parts of the Critical National Infrastructure – such as utilities, nuclear plants and financial services.
The Cyber Highway portal was launched in September 2016 to support the broader Cyber Essentials certification scheme that was launched by the UK Government in June 2014.
“It makes complete sense that businesses should be able to prove that they have reached a certain level of cyber defence to be considered for contracts, particularly for those working with Governments where highly confidential citizen data is at risk,” said Robert Brown, CEO of Cognosec AB. “We are specialists at understanding the cyber threat facing the UK and EMEA areas and are fully committed to utilising The Cyber Highway to achieve Cyber Essentials Certification – to help ensure levels of cyber protection in these areas are kept as high as possible.”
John Lyons, CEO of Cyber Essentials Direct Ltd, added, “We’re delighted to be naming Cognosec AB as a Primary Partner. The scale and outreach that they will be able to achieve through use of The Cyber Highway will help ensure improved levels of cyber resilience for companies in many regions of the world that badly need a cost-effective solution that will provide increased levels of safety and security against cyber-attack. Globally, business communities of all shapes and sizes are experiencing increased risk from cyber threats and the only way this will be countered is by implementing these very basic yet sound technical security standards that have been created by the UK’s GCHQ.
With a wealth of experience in the security industry, Cognosec AB is already a trusted adviser to businesses seeking to improve their security against cyber-attack. The introduction of The Cyber Highway to their operations, will deliver additional critical capability, enabling their cyber security experts to evaluate threats and help companies implement the most effective range of good practice cyber defences.”
BRIEFING ON COGNOSEC
Cognosec AB (publ) is a Group of specialist cybersecurity companies with the parent company in Sweden, and operating internationally through subsidiaries in United Kingdom, Germany, Sweden, South Africa, Kenya, and the United Arab Emirates. The Group delivers security, governance, risk and compliance services to help clients across a variety of industries – including banking and finance, government, healthcare, manufacturing and retail – to protect themselves against security threats. The Cognosec Group reports revenues of 16 826 TEUR for the full year 2015. For more information, please visit www.cognosec.se
About Cyber Essentials Direct Ltd
Cyber Essentials Direct Ltd, creators of The Cyber Highway, offer a new, unique and user-friendly online portal for large enterprises that want to strengthen the cyber defence of their supply chain, and for companies of all sizes that want to improve their cyber resilience.
It is the first time that companies will be empowered to take control online of the Cyber Essentials certification process, enabling them to make improvements to the safety and security of their digital assets. Enterprise companies will have the ability to monitor in real-time the progress that their suppliers are making, en route to Cyber Essentials certification.
For more information, please visit www.thecyberhighway.com,
Email: info@thecyberhighway.com
This media release is available on Twitter @thecyberhighway and @cyberprotection
Media contacts:
For Cognosec AB:
Magnus Stuart, IR Officer
+46 706 211 350
For Cyber Essentials Direct Ltd:
linda.bentley@cyberessentialsdirect.com
+44-1296-340888
Cognosec AB approved for listing on Nasdaq First North in Stockholm and publishes company description
Cognosec AB (publ) (“Cognosec” or “The Company”), a leading Cyber Security Group and supplier of diversified solutions within the Cyber Security Sector with operations in Europe, Africa and the Middle East, has been approved for listing on Nasdaq First North. The trading is expected to commence on 22 September 2016 under the ticker symbol ”COGS” with ISIN code SE0007604061. The Company has compiled a company description that has been approved by Nasdaq First North which as of today is available on Cognosecs website, www.cognosec.se.
Jacobus Paulsen, Chairman of the Board in Cognosec says:
”Cognosec has shown strong organic growth and has considerable potential for further acquisitions. Cognosec is an accredited, profitable and debt free company that offers multiple Cyber solutions around the globe. We will continue to establish operational centres in key geographies by acquiring cyber companies to expand the products and services of the Cognosec portfolio. We now have a scalable platform in place which will strengthen our market position and the listing will be a key milestone in our development.”
Background and rationale for the listing
Cognosec experiences good sales development and the Company are in negotiations regarding several new contracts within the areas of Managed Cyber Security Services, Penetration Testing and Intrusion Prevention Services. In addition, the Company has identified several acquisition opportunities that could strengthen the offering further. Therefore, the Board believes that Cognosec is now ready to list the Company’s shares on Nasdaq First North. For the purpose of preparing the Company and to apply for the listing, Cognosec has prepared a company description that has been approved by Nasdaq First North, which as of today is available on Cognosec’s website, www.cognosec.se.
A listing of the Company’s shares on Nasdaq First North increases the visibility, which is expected to increase the interest in the Company and its products and services. A listing will also increase the company’s transparency, which builds credibility and brand among key audiences such as existing and potential customers and key employees. A listing also provides improved access to the capital markets and the ability to use the company’s shares as payment in acquisitions. Lastly, a listing on Nasdaq First North creates conditions for liquid trading of the Company’s shares.
Advisors
Danske Bank has acted as financial advisor to the Company in connection with the compilation of the Company Description. The law firm Hammarskiöld & Co has acted as legal advisor to the Company in connection with the listing in respect of Swedish law. Fogel & Partners is acting as strategic communications advisor to the Company.
Cognosec AB: Publication of Annual Report for 2015
Cognosecs AB (publ) has decided to further revise plans for the publishing of the Company´s Annual Report for 2015. Work in the completion of the Annual Report has proven to be more comprehensive then anticipated, and thus taken more time than previously planned.
New date for the publication of Cognosec AB Annual Report 2015 has been set as Friday, May 13th, 2016.
This message implies that publishing data contained in the Company’s financial calendar has been updated with this information.
For more information please contact:
Magnus Stuart, IR Officer
46 706 211 350