Sophos full-year billings up 20%

FTSE 250 cyber security firm Sophos Group reported solid sales growth on Thursday in its first results as a public company.

For the year to the end of March, like-for-like billings grew 19.7% year-over-year to $534.9m, with strong billings growth across all regions and products, driven by growth in new and existing customers.

Meanwhile, cash earnings before interest, tax, depreciation and amortisation were 31.6% higher at $120.9m.

Numis said billings growth was at the top end of the guidance range while cash EBITDA was ahead of its forecast of $117m.

Chief executive officer Kris Hagerman said: "We are pleased with our strong performance during our first year as a public company. The year has been marked by sustained strength across all major regions and product categories, with our financial and operational performance exceeding the board's expectations set at the start of the year and at the upper-end of our revised outlook.”

For the year to the end of March 2017, the company expects to deliver mid-teens percentage billings growth on a like-for-like basis whilst also delivering modest cash EBITDA margin expansion, reflecting the operational leverage in the business.

Sophos proposed a final dividend of 1.1 cents per share, taking the total dividend for the year to 1.8 cents.

At 0924 BST, Sophos shares were up 0.9% to 227p.

“As the market gains confidence in the FY17 cash flow we think the shares should perform better, and US peers have been performing slightly better in recent weeks which is also helpful,” said Numis.