Stockholm, Sweden– 26 February 2021 – Cyber Security 1 AB (Publ) (the “Company”) (“CYBER1”) (Nasdaq First North: CYB1), an international leader in Cyber Security services today announces its Q4 2020 report, recording €5.74m in revenue for the period.
· Total Group revenue delivered by CYBER1 group during Q4 2020 was €5.74m. The total gap from prior year has been minimised to 20%, on an organic basis, from an original 30% in Q1 2020. The company has taken further strategic steps to ensure 2021 is able to achieve strong sustainable growth across all of its operating regions.
· Total year to date revenue for the Group equated to €27.36m. This figure is subject to the Groups annual audit.
· Group Gross margin has increased year over year by 5%, from 17% in Q4 2019 to 22% in Q4 2020.
· Group operating expenditure has been reduced 36.7% on an organic basis, versus Q4 2019. Group initiatives implemented to boost the profitability of the company can be evidenced in Q4 2020, particularly due to a number of exceptional items incurred in Q1 2020 that will not be repeated in 2021.
· Group Q4 2020 EBITDA of -€744k EUR, compared to a profit of €942k in Q4 of 2019. This was primarily down to the reduction in revenue and a number of longer term deals being tracked that have not closed in time for the quarter end.
· The 2020 financial year has been a difficult one for the company, with significant financial pressures which brought a number of changes at a managerial level and the replacement of the Board. This was further exacerbated by the consequences of the global Covid-19 pandemic. However, the company has now brought the situation under control, resulting in a number of positive changes from the end of Q4 2020 that have been implemented for the start of the new financial year. A refocus towards our core offering, combined with the new personnel across a number of key business positions, will provide the company with a strong balance of commercial strategy and robust internal controls in 2021.
· Items affecting comparability- CYBER1 reported items affecting comparability of €12.1m. 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 of costs related to the restructuring and impairment of investments in Cognosec Ltd. This has impacted the statement of income and comprehensive income.
· DRS recorded revenue of €2.91m in Q4 2020, versus €6.22m in Q4 2019. The year to date revenue of €17.26m (nett of intercompany revenue) is 11% lower than the prior year.
· Credence Security (Middle East & India) recorded revenue of €2.36m in Q4 2020, versus €3.95m in Q4 2019.
· Credence Security (South Africa) recorded Q4 revenue of €316k in Q4 2020, versus €1.52m in Q4 2019.
· Protec (Kenya) recorded Q4 2020 revenue of €110k, versus €159k in Q4 2019.
Beyond the Quarter & Other News
· During the quarter period, CYBER1 was granted an extension to the reconstruction and the appointment of a new Administrator. The Stockholm District Court’s decision has confirmed that the reconstruction may continue until February 12, 2021. The district court may then decide that the reconstruction shall cease, if the company has not earlier applied for the period to be extended further. In addition, CYBER1’s request to appoint Marcus Wenner of 180 Grader as the new administrator for the reconstruction proceedings has been approved by the Stockholm District Court.
· Beyond the quarter, CYBER 1 requested an additional extension to the Swedish Courts to complete the reconstruction. The company has made positive progress during the reconstruction, through the appointment of advisors in Stockholm, as well as through the appointment of Marcus Wenner (of 180 Grader) as administrator. As previously confirmed, a financial funding package to address the reconstruction is ongoing and continued dialogue with creditors and key stakeholders is taking place.
· The company currently expects an application for a composition negotiation to be made no later than in the middle of March 2021.
Commenting on the publication of the report, CEO Robert Brown stated: “ As we reflect on the end of 2020, the company has been able to make a number of important strides in stabilising its subsidiary operations, whilst continuing to make significant progress at the parent company level in Sweden. CYBER1 has focussed on ensuring that our clients can continue to receive the high touch interaction, that is synonymous with our approach. In collaboration with our valued partners, we have been able to continue our services and guidance to our customers.”