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Thursday, 31 August 2017

Cognosec AB (Publ): Half Yearly Report Ending 30 June 2017 - Improving Margins with Second Acquisition Near Completion Stage

     

Published: 22:35 CEST 31-08-2017 /GlobeNewswire /Source: Cognosec AB (Publ) / : COGS /ISIN: SE0007604061

Cognosec AB (Publ): Half Yearly Report Ending 30 June 2017 - Improving Margins with Second Acquisition Near Completion Stage

Half Yearly Report Ending June 2017 31st August 2017

 

Improving Margins with Second Acquisition

Near Completion Stage

 

Cognosec AB (Publ) ("Cognosec" or the "Group") is pleased to announce its results for the six months ended 30

June 2017.

 

Highlights

 

Total revenues grew 5.6% to 7.5m EUR (H1 2016: 7.1m EUR). This, combined with lower cost of sales, demonstrated

improved margins compared to Half Year 2016. Total Gross Profit for H1 2017 increased 19.36% from 2.6m EUR (H1

2016) to 3.14m EUR (H1 2017). Key contracts that were previously delayed are beginning to be converted into confirmed

sales, planned annual increases in Group costs that have been incurred to provide greater synergy across the Group,

has led to reductions of costs in Q2 2017 by 250k EUR, compared to Q1 2017. Planned shortfall in revenue stretched

the Group's cash position, pending debtor collections and unwinding of deposits. Overall Group loss for H1 2017 -1.6m

EUR (2016 H1: loss of 582k EUR). A-tek acquisition has been completed and has now been officially rebranded as

Credence UK. Cognosec AB announced the signing of Heads of Terms of Agreement, pursuant to the acquisition of

Intact Software Distribution and this acquisition is nearing the completion stage. These acquisitions reflect a planned

investment in upscaling our managed service and product offering across the globe.

 

· Group Revenue of 7.5m EUR (H1 2016: 7.1m EUR), an increase of 5.6%.

· Group loss of -1.6m EUR (H1 2016: loss 0,774m EUR)

· Cognosec UAE increased revenues by 22% to 1.67m EUR for H1 2017. (H1 2016:1.36m EUR).

· Credence SA increased revenues by 507k EUR (181.7%), to 786k EUR, compared to H1 2016 (279k).

· Group Gross Margin for H1 2017 was 41.9% (H1 2016 Gross Margin: 38.4%).

· Quarterly underlying operating loss, excluding new European entities: -516k EUR (Q1 2017 loss -78k EUR).

· The Group's net debt at the end of Q2 2017 was 144k EUR (Q1 2017: net debt 86k EUR).

· Group Q2 operating loss of -1.33m EUR (Q1 2017 YTD: loss 846k EUR).

· The Group employed 139 staff at the end of Q2 2017, up 21% compared to Q2 2016 (114).

 

*Result per share refers to result per share atributable to equity owners of the parent company. There is no dillution of earnings per share. This report

is published in English. Average number of shares outstanding for the period 30 June 2017 (Q2 2017) were 257,159,500 (Q2 2016 average number

of shares outstanding 247,600,500 ).

 

Contacts

 

For additional information, please contact: Tim Metcalfe or Miles Nolan, IFC Advisory, Cognosec AB

Telephone: +44 203 053 8671 E-mail: cognosec@investor-focus.co.uk

 

About Cognosec AB (Nasdaq: COGS.ST)

 

Cognosec AB (Publ) is engaged in cyber security and conducts its operations in Sweden, South Africa, UK, Kenya,

Germany, Austria and the United Arab Emirates. Listed on Nasdaq First North (Nasdaq: COGS.ST), the Group

delivers services and technology licences to enhance their clients' protection against unwanted intrusion and to

prevent various forms of information theft. Cognosec had revenues of 14.64m EUR in 2016. For further

 

information, please visit www.cognosec.se

 

 

 



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This announcement is distributed by Nasdaq Corporate Solutions (One Liberty Plaza, 165 Broadway, New York, NY 10006. Tel: +1 212 401 8700. www.nasdaqomx.com) on behalf of NASDAQ OMX Corporate Solutions clients. Source: Cognosec AB (Publ), 3rd floor, The News Building 3 London Bridge Street, London SE1 9SG, United Kingdom
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