Falanx upbeat as it launches major new product

Intelligence, security and “cyber provider” Falanx updated the market on its operations ahead of its close period on Tuesday, reporting “significant” new sales contracts with recurring revenue.

The AIM-traded company said it remained on course for operational break even in the current financial year, with sufficient cash to see all current operations through to profitability.

It said the Falanx Cyber business had secured a new security-as-a-service contract with a “leading UK-based IT service provider” worth more than £0.2m.

Falanx Assynt also won new multi-year contracts for 'embedded analysts' with a large US-based insurance company, and a global high street retailer of beverages.

The company also confirmed the launch of full capability in its ‘MidGARD’ product, which it described as its proprietary ‘advanced threat detection platform’ - part of its managed detection and response service which underpins the firm’s monitoring capability.

It said the MidGARD pilot - run over the last six months - was now complete, with MidGARD v2 - the “latest and most advanced” iteration of the platform based on the “latest open source components” - completed on schedule and ready for main launch.

The full MidGARD service would be launched to the market at the 44CON 2017 cyber security conference in mid-September in west London.

Falanx’s board said it believed the “highly exciting, disruptive and long-awaited” technology would “redefine” managed cyber security services.

Also on the operational front, Falanx confirmed that its intelligence business was continuing to grow and retain the confidence and business of a “raft” of blue-chip companies.

It was being rebranded from Stirling Assynt to Falanx Assynt as of Tuesday morning, which the board said would provide more “visible joint identity” and cross-selling opportunity with other Falanx businesses.

The company was also opening its new headquarters in the City of London on Tuesday, which the board said was close to its financial services clients, providing “improved client reception” and sales facilities as well as more capacity to meet demand across the lines of business.

Looking internationally, the Falanx board pointed to the new subsidiaries established in the US and Spain, with the new division in America created to capture clients on that side of the Atlantic.

The new subsidiary in Spain was established to support Falanx CyberTech, the board explained in its statement, as well as the growth of its software development team, sourcing talent from Spain and the rest of Europe.

“It has been an incredibly busy time at Falanx, with key milestones delivered that underpin our business performance going forward,” said chief executive Stuart Bladen.

“Falanx has secured significant new business contracts with ongoing revenue streams that provides us with confidence to reach operational break even during the financial year with sufficient cash to see all current operations through to profitability.

“We are also delighted to launch both MidGARD and our US service this month whilst our new sales, new HQ and new Falanx Assynt Brand are all key steps in the rapid evolution of our business.”