London United Kingdom – 26 August 2020 – Cyber Security 1 AB (Publ) (the “Company”) (“CYBER1”) (Nasdaq First North: CYB1), an international leader in Cyber Security services today announces its H1 report, recording 16.01m EUR in revenue for the period.

Group Performance
· Total Group revenue for CYBER1 equated to 16.01m EUR for H1 2020. Following the first quarter results the business has been able to reduce the prior year revenue gap by 11.9%, from an original 30% in Q1 2020.
· Group gross margin has increased year over year by 4%, from 21% in H1 2019 to 25% in H1 2020. An increase in services delivered to clients remotely, combined with an improved product mix has equated to a margin that has grown versus H1 2019.

· Group operating expenditure for the half year period has been reduced year over year by 9% on an organic basis, versus H1 2019. Further quarterly results will see the benefit of these harmonisation initiatives around the subsidiaries and head office, over the next six months of the financial year.

· Group H1 2020 EBITDA of -1.96m EUR, compared to a loss of -764k EUR in H1 of 2019. In H1 2020, the business was impacted by global lockdown measures as a result of the Covid-19 epidemic. The Group has not applied for or received any governmental reliefs with respect to the epidemic.
· Despite the wider global business landscape, the half year results for core business were on par with our expectations. The subsidiaries units have adapted quickly to the changing landscape and are well positioned to stabilise continuing operations and to build positively into the second part of the financial year.
· Items affecting comparability– CYBER1 reported items affecting comparability of 12.1m EUR. This comprises of closure costs of -3.88m and -4.81m of goodwill impairment related to the divestment of Itway Greece and Turkey. In addition, a total of -3.40m EUR of costs related to the restructuring and impairment of investments in Cognosec Ltd. This has impacted the statement of income and comprehensive income.

Subsidiary Performance
· DRS recorded half yearly revenue of 11.39m EUR in H1 2020, versus 11.00m EUR closed in H1 2019.
· Credence Security Middle East & India recorded quarterly revenue of 3.09m EUR in H1 2020, versus 5.86m EUR in H1 2019. The impact in the region has limited business expansion, however the entity is working to utilise its third and fourth quarter to recoup some of the initial loss of revenue from the first half of the year.
· Credence Security South Africa recorded half yearly revenue of 551k EUR in H1 2020, versus 1.19m EUR closed in H1 2019.
· Protec (Kenya) recorded half year revenues of 578k EUR in H1 2020, versus 727k EUR closed in H1 2019.
· Certain businesses within CYBER1 have seen a variety of affects to their operations, based on local economic and public health responses. Jurisdictions in the Middle East and India specifically have had to postpone overall growth plans within this region, due to government lockdown provisions still being implemented. There is a strong focus in realising longer term prosperity in these locations however, given the significant research into the market opportunities that are available that complement our existing vendor and services portfolio.

Beyond the Quarter & Other News
 
· CYBER 1 AB continues through the Reconstruction. Dialogue with existing shareholders and creditors has been positive despite the challenges of Covid 19 and the subsequent difficulties in facilitating the process. The Board of Directors has requested that the Court provides an extension to the Reconstruction process, to ensure all stakeholders have been accurately engaged and analysed through the process.

· CYBER1 called an EGM, that will take place on the 27th of August.

· The Board of Directors have implemented a Control Balance Sheet, in accordance with the Swedish Companies Act. Following a review by the Company’s Auditor RSM Stockholm AB without comments, the Company is able to demonstrate that its registered Share Capital is intact.

· CYBER1 appointed Peter Gustafsson as Acting CEO to the company, to support the ongoing Reconstruction process and further stabilisation of the business.

· After the quarter period, Thomas Bennett resigned from his position as a board member.

Commenting on the report, Acting CEO Peter Gustafsson stated: “As all businesses continue to adapt to the new environment, born out of the spread of COVID-19, CYBER1 has maintained its clear focus towards facilitating its array of clients. Importantly, this approach has been achieved whilst maintaining a close and personal relationship with our key stakeholders, in this time of greater remote interactions.”
 
“With the reconstruction process ongoing, the company is pushing forward towards maximising the business opportunities from the upcoming two quarters, with significant intent and purpose. As an executive group, we have to refocus with key strategic vendors and partners, as well as further facilitating our professional service offering, to provide a strong margin blend that will positively affect our financial reporting. From a strategic perspective, I am working closely with the board to stabilise the company and to enable the execution of our sales strategy for 2020 and also 2021.”