# Falanx Group Limited Contract Wins and Coronavirus Business Interruption Loan

- Link: https://www.directorstalkinterviews.com/falanx-group-limited-contract-wins-and-coronavirus-business-interruption-loan/412958842
- Published: 2021-02-05T07:11:28+00:00
- Author: Giles

**Falanx Group Limited** ([LON:FLX](https://www.directorstalkinterviews.com/company/falanx-cyber-security/fcs.l)),
the AIM listed provider of cyber security and strategic intelligence services, has
announced today new contract wins and renewals alongside discussions in relation
to the UK government backed Coronavirus Business Interruption Loan.

 
**Cyber Security Division**

The division has since November 2020 signed a further five new customers as well
as an expansion to some existing contracts for Triarii, its enhanced cyber security
monitoring service. The new customers span a range of sectors, namely charity, financial
services, pharma, defence and IT – clearly illustrating the universal appeal of 
the Triarii offering. This has been achieved through a combination of direct and
indirect sales including the SolarWinds and Trustmarque partnerships. In terms of
service coverage, they include Triarii MDR, Managed EDR and Triarii for Sentinel–
the Microsoft Azure-based service which was launched on 13 January 2021 and which
was developed in partnership with Trustmarque, part of Capita plc.  Further details
are on https://www.trustmarque.com/cyber-security/managed-detection-and-response-
service/

The division has also maintained the strong performance of its penetration testing
business, and this is materially above the pre-COVID-19 sales order run rate achieved
this time last year.  Clients are from several sectors including insurance and construction,
with one client signing a three year framework agreement worth approximately £180,000
in total.

In total the order value across all of these contracts is in excess of £700,000,
of which approximately £400,000 will benefit the 2021 calendar year.  The order 
pipeline remains strong with similar prospective sales for both penetration testing
and security monitoring.

**Assynt Strategic Intelligence Division**

The division has continued with its solid profitable performance which remains in
line with management expectations. It has recently received a renewal for the provision
of analysts from an existing client, one of the world’s largest technology companies,
for £1.2m spread over the next three financial years. Further significant cyclical
contract renewals from major corporations are expected to be received in the next
few months, and it has a robust pipeline of opportunities from new and existing 
customers.

Potential Coronavirus Business Interruption Loan (“CBIL”) and Capital Reconstruction.

Falanx announces that it is in discussions with a specialist lender for the provision
of a UK Government backed CBIL loan. This loan would enable the Group to make earnings
enhancing acquisitions to enhance its core Cyber division, as well as supporting
organic growth. To qualify for the CBIL the Company will be carrying out a capital
reconstruction by reducing the share premium account, to decrease the deficit on
retained earnings. The reduction of the deficit on retained earnings will, amongst
other things, facilitate Falanx in making distributions to its shareholders at some
point in the future. Under BVI law the reconstruction will require a change to the
memorandum and articles of association and a general meeting will shortly be called
in respect of this proposal.

> **Mike Read, Falanx Group Chief Executive, commented:** “I am pleased with the
> continued contract momentum in both of our divisions.  Triarii is gaining further
> traction and recent sales of, and interest in, our Microsoft Sentinel service 
> offering, which was only launched last month, validates our chosen strategy of
> channel partners and using third party leading technologies to deliver our services.
> Customers in both divisions are increasing their commitments to us in terms of
> both quantum and duration and again, this underlies the value of our services 
> to them.  We will look to progress the CBIL opportunity and will update the market
> at the appropriate time as we see this as a strategy which can further support
> equity growth by enabling earnings enhancing acqusitions.”

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