Crossword Cybersecurity shares fall as losses widen
Shares in Crossword Cybersecurity fell on Monday as it reported a deepened interim loss, with higher costs more than outweighing revenue growth.
The cybersecurity technology company booked a loss before tax of £1.1m for the six months ended 30 June, compared to a £0.8m loss for the same period the year before, as its cost of sales rose 47% to £0.7m and administrative expenses climbed 9% to £1.0m.
The AIM-traded firm attributed the higher costs to increased investment in product development, and sales and marketing.
Meanwhile, revenue increased 5% to £0.6m, as product and consulting turnover improved by 21%.
The board said the company had continued to focus in converting its pipeline into revenue, and was aiming to close several large opportunities in the final quarter.
It said it remained confident that its full-year results would be in line with market expectations.
"I am very pleased with the progress achieved in the first half of 2019, with a significant rise in the order book and pipeline for both Rizikon Assurance, and consulting," said chief executive officer Tom Ilube.
"We expect the momentum achieved in the first half to continue, with our focus on scalable, recurring product revenue, through conversion of pipeline into orders."
Crossword Cybersecurity shares were down 8.91% at 460.00p, as at 1605 BST.