Sophos raises outlook after strong first half trading

Billings to customers rose 22% to $341.5m (£260m) in the six months to the end of September and by 29% in the second quarter as companies spent money to protect computer systems, Sophos said.

Adjusted operating profit fell 30% to $15.1m as the company spent money upfront to bring in subscriptions with deferred revenue. Profit was also reduced by a currency exchange loss of $5m compared with $400,000 a year earlier.

Chief executive Kris Hagerman said: "The demand environment for cybersecurity remained strong in the first-half of the fiscal year. The good momentum we saw in the first quarter strengthened across all areas and geographies of our business in the second quarter.

"We view the second half with confidence, and we are raising our outlook for billings and unlevered free cash flow for the full year."

Shares of the FTSE 100 company rose 4.8% to 644p at 08:36 GMT.