We expect the momentum achieved in [the first half] to continue, with our focus on scalable, recurring product revenue, through conversion of pipeline into orders.
Tom Ilube, chief executive
What it does
The group currently has two main products, Rizikon Assurance, a risk assessment tool that helps companies evaluate their suppliers and other third parties, and Nixer, a machine-learning-based cybersecurity tool, which is scheduled for release at the end of 2019.
How it’s doing
For the six months ended 30 June, Crossword reported that revenues had risen 5% to £570,757, boosted by a 21% increase in sales from its product and consulting arm.
Pre-tax losses widened to £1.07mln from £823,679 in the half-year, which the company attributed to investments in marketing and product development.
Crossword also said orders for Rizikon had almost doubled in the first half, and that it remained confident full-year results would be “in line” with market expectations.
The group added that it was close to agreeing “one or more” distribution deals over the coming months.
- In October, the company said it had signed a two-year contract for Rizikon Assurance with a FTSE 250 chemicals firm to assess its strategic suppliers
- In early September, Crossword launched the second iteration of its Rizikon Assurance platform, providing improved visualisation for customers of all risks for each third-party through fully customisable at-a-glance supplier scorecards
- In August the company won a contract with three local councils in the UK to use its software to manage compliance with GDPR (General Data Protection Regulation)
Interview: Mary Dowd, finance director
What the boss says:
"I am very pleased with the progress achieved in the first half of 2019, with a significant rise in the order book and pipeline for both Rizikon Assurance, and Consulting. We expect the momentum achieved in [the first half] to continue, with our focus on scalable, recurring product revenue, through conversion of pipeline into orders," said Tom Ilube.
With the shares trading at around 410p as of 8 October 2019, Crossword carries a market cap of £18.9mln.