PRESS RELEASE
Communication pursuant to article 11 of the AIM Issuers' Regulation
(price sensitive disclosure)
CYBEROO BOARD OF DIRECTORS APPROVES FY2020 CONSOLIDATED
RESULTS.
Revenues in the Cyber Security market grew by +29%, well beyond the slight growth forecasted for the sector.
The value of production is growing.
EBITDA and net income fell as a result of bringing forward the investments planned for the three-year period in order to consolidate the service and the commercial structure.
87% of revenues from sales are recurring.
- Value of Production: €7.6 million (+13.5% compared to the 2019 Consolidated €6.72 million)
- EBITDA: €1.88 million (-23% compared to the 2019 Consolidated €2.45 million)
- Cyber Security revenues: €1.63 million (+29% compared to the 2019 Consolidated €1.27)
- Net Profit: €0.06 million (-92% compared to the 2019 Consolidated €0.7 million)
- NFP (Cash) -€2.12 million (compared to -€3.29 million in the 2019 Consolidated)
Reggio Emilia, March 29, 2021- The Board of Directors of Cyberoo S.p.A., a company listed on the AIM Italia stock market and specialized in Cyber Security, today examined and approved the draft financial statements and the consolidated financial statements for the year ended December 31, 2020.
Fabio Leonardi, CEO of Cyberoo, commented: "Overall, the results for the period are very
positive for two reasons: we're shortening the Go-to-Market times and seeing growth of +29% in the cyber security market, well beyond the timid positivity of the sector in general, projected to slow significantly in 2020 to +3.7% in Italy and + 4.2% globally.1
The results were partly impacted by the decision to bring the investments planned for the period 2020-2023 forward to 2020. This decision was linked on the one hand to the excellent response received from the market and important entities such as Gartner, and on the other to make the most of this particular year.
1 Forecast: Information Security and Risk Management, Worldwide, 2018-2024, 4Q20, Gartner, December 22, 2020.
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It has therefore been a year of important investments in people and technology, but also of strategic partnerships and contracts with important large national and multinational companies, which started working with us for the first time. Acting on several fronts, we have laid the foundations for achieving the ambitious goals we set for the future starting from national leadership in cyber security services as early as 2021.
The size and prestige of the new customers also confirms the excellence of our service, underscored by the Gartner company - 'You are able to provide a product and a service, which is a big differentiator as there are only a handful of players in the world that do that' - and further supports the idea that it was necessary to broaden the market to achieve leadership in subsequent years and monetize the technological added value.
We are now present throughout the country thanks to a distribution agreement, resulting in important partnerships with retailers that are well distributed across the various geographical
areas. We launched "Cyberoo Defense For Italy" to support Italian companies in a period of
national emergency, with an ethical investment that will also bring strong economic benefits in the near future. We have invested in the updating of the subsidiary LYB, the new Cyberoo51, to exploit synergies and complementarity between Data Protection and Data Governance services and Cyberoo solutions for cyber security.
Thanks to our employees, increased by more than 50% over the course of 2020, the growth and consolidation of the distribution channel and the increase in the importance of cyber security in company strategies, for us 2021 will be a year of growth both in terms of revenues and marginality. We're just getting started."
Main consolidated results as of December 31, 2020
Since the beginning of 2020 Cyberoo has been strongly committed to the development of the distribution and resale network and partnerships aimed at structuring the internationalization process.
With the outbreak of the pandemic, the second and third quarters of the year saw the company adapt to the crisis with actions put in place to preserve safe working conditions for its employees. Despite the slowdown in the end-user market, the commercial breadth of cyber security services continued to be strengthened through partnerships, bringing forward the investments planned for the period 2020-2023 with the goal of consolidating financial results as early as 2021.
In the second half of the year, Cyberoo significantly expanded its customer portfolio thanks to companies' increased awareness of cyber crimes and the "Cyberoo Defense for Italy" project. This project offered companies the opportunity to take advantage of cyber security services for free for three months and was very positive in terms of acquiring new customers and creating a revenue baseline for 2021, but at the same time slowed revenues in 2020.
The number of Cyberoo employees increased considerably during the year. As of December 31, 2020 there were 76 resources in Italy (52 in 2019) and 52 in Ukraine (30 in 2019), for a total of 128 people (82 in 2019).
As of December 31, 2019, after the IPO, Cyberoo had two partnership contracts in place for Emilia-Romagna and lower Lombardy. At the end of 2020, thanks to the capital raised by the IPO, whose main objective was the organic growth of the company and the Go-to-Market, Cyberoo was able to count on a national distribution contract and 25 value-added partnership
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contracts that cover all of Italy. The first steps were also taken in France, Germany, and Austria.
The consolidated financial statements were prepared based on the financial statements for the year ended 12/31/2020 of the companies Cyberoo S.p.A., Cyberoo51 S.r.l., and MFD International S.r.l., which fall within the scope of consolidation of the Cyberoo Group.
Note that the 2019 comparative data refer to the consolidated financial statements as of 12/31/2019.
Total revenues amounted to €5.58 million, -0.65% compared to €5.62 million in 2019. Particularly worthy of note is the growth of the Cyber Security & Device Security business area, resulting in an increase in recurring fees, all thanks to the acquisition of important new customers.
To date, the Cyber Security & Device Security and Managed Services business areas are worth 96% of revenues overall, in line with the strategy of focusing on the activities with the highest margins and with a pricing based on recurring revenues.
The following is a breakdown of revenues by business line that underscore the growth of the Cyber Security and Managed Services lines, areas that the Group has predominantly focused its efforts on as they are seen as those offering the greatest prospects:
Breakdown of Revenues | 12/31/2019 | Inc. % 12/31/2020 Inc. % | ||
Cyber Security & Device Security | 1,268 | 23% | 1,631 | 29% |
Managed Services | 3,655 | 65% | 3,748 | 67% |
Digital Transformation | 670 | 12% | 207 | 4% |
Total | 5,623 | 100% | 5,586 | 100% |
Production value amounted to €7.6 million, +13% compared to €6.72 million in 2019. The growth is also due to the item "Increases in fixed assets for internal work" amounting to €1.48 million in 2020.
EBITDA was €1.88 million, equal to an EBITDA margin of 24.7% of the value of production, down 12.4% compared to 2019 (€2.45 million).
Values in € million | 12/31/2019 | 12/31/2020 |
Value of Production | 6,724 | 7,634 |
EBITDA | 2,455 | 1,884 |
Margin % | 36.51% | 24.68% |
Pre-tax income of €0.1 million decreased by 91% compared to €1.05 million in 2019.
Net Profit of €0.06 million decreased compared to 2019 and amounted to 1% of total Revenues.
Income Statement | 12/31/2019 | 12/31/2020 | % |
Revenues from sales and services | 5,622,811 | 5,586,086 | -0.65% |
Increases in fixed assets for internal work | 851,000 | 1,478,413 | 73.73% |
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Other revenues and income | 249,968 | 569,609 | 127.87% | |||
Value of Production | 6,723,779 | 7,634,107 | 13.54% | |||
Raw materials, subsidiary materials, consumables and goods | 2,527,429 | 1,770,267 | -29.96% | |||
Services | 432,514 | 1,445,508 | 234.21% | |||
Rental, lease and hire | 114,675 | 178,292 | 55.48% | |||
Personnel costs | 1,461,454 | 2,291,146 | 56.77% | |||
Changes in inventories of raw materials, subsidiary materials and | - | 359,438 | 19,030 | -105.29% | ||
goods | ||||||
Other operating costs | 91,658 | 45,442 | -50.42% | |||
Cost of Production | 4,268,292 | 5,749,684 | 34.71% | |||
EBITDA | 2,455,487 | 1,884,423 | -23.26% | |||
Amortisation, depreciation and write-downs | 1,319,287 | 1,696,789 | 28.61% | |||
EBIT | 1,136,200 | 187,634 | -83.49% | |||
Financial income and expenses | - | 86,654 | - | 90,576 | 4.53% | |
Earnings before Taxes | 1,049,546 | 97,058 | -90.75% | |||
Income taxes | 344,933 | 41,071 | -88.09% | |||
Profit/(Loss) for the Period | 704,613 | 55,987 | -92.05% | |||
Net fixed assets as of December 31, 2020 amounted to €8.06 million, up compared to the previous year by 21%, mainly due to the increase in intangible assets as a result of significant investments in software technologies and research and development during the year. Industrial patents and rights to use intellectual property amount to €2.43 million (in 2019 equal to €1.69 million) and are represented by software (registered with the SIAE) aimed at improving the supply and services provided. This includes projects like "OSINT Open Source Intelligence," "CYPEER," and "DATA MINING" - "TITAAN" PROJECT. Fixed assets under construction and advances amounted to €1.88 million (in 2019 equal to €1.13 million) and are attributable to capitalized costs for the study and development of the "OSINT," "TITAAN," and "CYPEER" software.
Net working capital decreased from €1.69 million as of December 31, 2019 to €1.74 million as of December 31, 2020 mainly as a result of the increase in trade receivables related to the increase in turnover from new key customers.
The Group's Net Financial Position (Cash) was equal to €2.12 million compared with €3.29 million in 2019.
Balance Sheet | 12/31/2019 | 12/31/2020 | % |
Intangible Fixed Assets | 5,662,340 | 6,835,645 | 21% |
Tangible Fixed Assets | 854,216 | 1,062,307 | 24% |
Financial Fixed Assets | 140,594 | 159,945 | 14% |
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Net Fixed Assets | 6,657,150 | 8,057,897 | 21% | ||
Trade Receivables | 2,822,907 | 2,976,602 | 5% | ||
Trade Payables | - | 1,696,412 | - | 1,284,967 | -24% |
Other current assets | 1,443,188 | 971,273 | -33% | ||
Other current liabilities | - | 884,170 | - | 926,665 | 5% |
Net working capital | 1,685,512 | 1,736,243 | 3% | ||
Provisions for risks and charges | - | - | 10,968 | - | |
Employee severance indemnities | - | 214,987 | - | 325,978 | 52% |
Other receivables and non-current payables | - | 776,328 | - | 433,273 | -44% |
Non-current assets and liabilities | - | 991,315 | - | 770,219 | -22% |
Net invested capital | 7,351,348 | 9,023,921 | 23% | ||
Share capital | 950,000 | 964,765 | 2% | ||
Reserves | 8,986,041 | 10,139,512 | 13% | ||
Reserve for hedging transactions of expected financial flows | - | - | 10,603 | - | |
Profit (Loss) carried forward | - | - | |||
Profit (Loss) for the period | 704,613 | 55,987 | -92% | ||
Shareholders' Equity | 10,640,654 | 11,149,661 | 5% | ||
Cash and cash equivalents | - | 4,384,242 | - | 3,347,076 | -24% |
Financial assets | - | - | 1,100,000 | - | |
Financial payables | 1,094,936 | 2,321,336 | 112% | ||
Net Financial Position | - | 3,289,306 | - | 2,125,740 | -35% |
Borrowings | 7,351,348 | 9,023,921 | 23% | ||
Main significant events during 2020
Below is a list of the main events that took place during the year:
- On January 8, Cyberoo signed a consulting partnership agreement with Gartner that aims to boost the growth and development of products, as well as to support the commercial internationalization strategy.
- On January 10, Cyberoo established a strategic partnership with Digital360, launching the offer of cyber security for data protection in medium and large companies.
- On February 27, Cyberoo established a technological partnership with Ricca IT and consolidated its position in the enterprise market.
- On March 13, Cyberoo established a partnership with ZeroUno Informatica S.p.A. and reinforced its presence in the Brescia industrial area.
- On April 2, Intermonte SIM became Cyberoo's new Specialist & Corporate Broker.
- On April 15, Cyberoo was recognized by Equita as one of the companies with the best capital market utilization strategies.
- On April 20, "Cyberoo Defense for Italy" was created, the free three-month cyber
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