Stockholm, Sweden– 21 May 2021 – Cyber Security 1 AB (Publ) (the “Company”) (“CYBER1”) (Nasdaq First North: CYB1), an international leader in Cyber Security services today announces its Q1 2021 report, recording 7.93m EUR in revenue for the period, combined with an EBITDA profit of 252k EUR.
· Group Gross margin has increased year on year by 5.9% which equates to a gross margin of 28.7% in Q1 2021.
· Group operating expenditure has been reduced significantly, due to the successful implementation of operational efficiencies across the group. This has resulted in a decrease of over 40.3% to €2.07m, versus the €3.47m in Q1 2020. As indicated in previous reporting, the benefits of harmonisation initiatives have now taken effect within the organization, increasing the overall profitability of the company. Following analysis of company operations, the executive has implemented effective measures into the parent company and wider subsidiaries, that have increased greater efficiency and tighter corporate governance controls. Further quarterly results will aim to see these benefits of the harmonisation initiatives to the profitability of the company.
· Total Group revenue closed for CYBER1 during Q1 2021 was €7.93m.
· Group EBITDA profit of €252k, compared to a loss of €-1.26m in Q1 of 2020. This change has been a result of greater operational efficiencies that have been realised during the reconstruction process throughout the last twelve months, in addition to improved margins on service and additional revenue streams.
· Whilst the effect of the global pandemic are still ongoing, due to the increase utilisation of professional services and partnerships with vendor solutions, CYBER1 has seen an overall stronger margin blend for the business. Combined with the streamlined operations within the parent company and the subsidiaries, the company has been able to position itself positively for the coming financial year.
· DRS recorded revenue of €5.2m EUR in Q1 2021, versus €6.4m in Q1 2020.
· Credence Security Middle East & India recorded revenue of €2.1m in Q1 2021, versus €1.7m in Q1 2020.
· Credence Security South Africa recorded Q1 2021 revenue of €286k in Q1 2021, versus €284k in Q1 2020.
· Protec (Kenya) recorded Q1 2021 revenue of €159k, versus €317k in Q1 2020.
Beyond the Quarter & Other News
· Beyond the quarter, CYBER1 filed for the composition hearings with the Stockholm District Court, pursuant to the ongoing company reconstruction, with a proposal of a compulsory composition. The Company plans to carry out a rights issue as part of the initial steps for exiting the reconstruction process.
· Following the Company’s press release on 11th May 2021 informing on the Company’s application for a composition hearing (Sw; ackordsförhandling) aiming at concluding the reconstruction process, the court has decided that the composition hearing will take place on the 7th of June 2021, at 15:00 local time at Scheelegatan 7, Stockholm.
· On May 17th 2021, CYBER1 announced that short term interim operating capital of 500k euros has been secured from existing shareholders. The lenders shall have the right, instead of cash repayments, to set off the loan claims against new shares and warrants on terms equal to the planned rights issue broadly outlined in a press release on 11th May 2021, where the rights issue is subject to certain developments around the composition filing and shareholders’ approval at an extraordinary shareholders’ meeting. The loan will constitute general rights of priority (Sw. allmän förmånsrätt) according to the Rights of Priority Act (Sw.förmånsrättslagen). Administrator Marcus Wenner, of the corporate restructuring proceedings, has approved the taking on of the loan by the Company.
Commenting on the publication of the report, CEO Robert Brown stated: “This first quarter for 2021 has been focussed on ensuring strong margins have been attained, combined with seeing the benefits of strengthening our corporate governance in Sweden and further improving the reporting and internal analytics for the business. Moreover, in combination with the strong results, the filing of the composition hearings is another milestone within the company’s history. CYBER1 has spent considerable time working with the administrator in ensuring our operations are compliant and providing essential insight into our sales and business development sections. This has manifested into greater connection with Sweden, with our financial accounting and corporate governance now stronger than ever. Whilst a number of positives have been achieved during this quarter, there is considerable work to be done to ensure that we can continue this trajectory for the business. Fundamentally, our aim is to grow organically and expand from a position of strength in markets where we have a proven track record. It is this approach that will ensure the company will thrive and provide the essential services and solutions that are paramount to our customer’s security needs.”