Defenx's first half revenue supported by growth in channel partners

Defenx, an AIM-listed mobile security software solutions company, has more than doubled its channel partners since its initial public offering (IPO) in December last year.

For the half year ended 30 June 2016, the group’s revenue rose 73% to €2.32m due to these new channel partner wins as well as new product launches. Majority of revenue, at 69%, was derived from software for mobile devices.

The firm has currently signed up with eight new channel partners, which has extended its reach across the UK, continental Europe and the Middle East.

The company’s new product launches inclue its Mobile Security Suite for Windows 10 phone and cloud backup for mobile, PC and network attached storage (NAS) drives.

The company has now sold over 3.8m licenses with over 1m active licensed users at 30 June 2016.

The management reported “strong” control over overheads with operating expenses falling by 39% to €0.71m due to lower staff and administrative costs.

Earnings before interest tax depreciation and amortisation (EBITDA) before exceptional costs however fell to €0.11m from €0.29m due to the firm bringing forward the full year marketing expenses into the first half to drive sales that are seasonally weighted into the second half of the year.

Post period the company acquired 95% of Memopal, a cloud and backup and sync company, which has added to the company’s product portfolio as well as increased its key channel partners and cross selling opportunities.

Chief executive Andrea Stecconi said: "The acquisition of Memopal in August brings a significant opportunity and we look forward to integrating it fully into our existing business to improve and extend our offering. Based on our performance to date and strong confirmed order book, we are confident of continuing to deliver significant growth in revenues and profits this year in line with market expectations."

The share price fell 2.49%to 98p at 1627 BST on Monday.