REG - Smarttech247 Group - Year-end trading update

Smarttech247Announcement

05/09/2024 07:00

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RNS Number : 9711C  Smarttech247 Group PLC  05 September 2024

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the public domain.

5 September 2024

Smarttech247 Group PLC

 

("Smarttech247", the "Group" or the "Company")

 

Year-end trading update

 

Smarttech247 (AIM: S247), a multi-award-winning provider of AI-enhanced
cybersecurity services providing automated managed detection and response for
a portfolio of international clients,  announces a trading update for the
year to 31 July 2024.

 

This financial year has been a period of significant strategic development for
the Group. We have secured major new customer contracts and expanded our
platform and product offerings. Notably, we have entered into new agreements
with leading companies across the packaging, financial services, and
pharmaceutical sectors. This momentum has carried into the new year,
highlighted by the signing of a substantial three-year contract, valued at
€860,000 in total, with an Irish public sector agency, with an option to
extend for an additional two years.

 

Furthermore, during the financial year, we have signed strategic partnerships
with industry leaders such as Cisco, Google, AWS, and Splunk, enhancing our
service and platform capabilities. We have also expanded our geographical
footprint into the Middle East and Switzerland, positioning the Company for
growth in these key markets. We have also been recognised as a vendor in the
Gartner Market Guide for Managed Detection and Response for 2024, which is a
notable achievement.

 

In the 2024 financial year, we have achieved a 49% increase in annual
recurring revenue ("ARR") on a run rate basis. ARR for FY2024 represents
approximately 60% of total unaudited revenues for that year, which is a key
performance indicator reflecting the Group's growing strength and resilience.
This significant increase underscores our success in securing long-term,
sustainable revenue streams, and it positions us strongly for continued
expansion in the coming years. We have also achieved a 100% client retention
rate for MDR clients during the period which clearly demonstrates the quality
of the service that we provide.

The Company's revenue typically sees a stronger performance in the second half
of the year, aligned with the timing of key contract renewals and this has
been borne out in the current year. Whilst market guidance anticipated a circa
20% growth in revenue for the year, we have experienced a modest shortfall
compared to this figure, although we anticipate that revenue will exceed the
figure for the previous year. With the improvement in run rate, the sales
pipeline for the coming year is looking exceptionally robust, positioning us
for continued momentum and success.

As described in our interim results for 2024, announced in April 2024, our
sales strategy has continued to be effective and we have recently announced
more avenues to grow the business via channel partnerships which augments our
direct sales strategy. Moreover, we will continue to invest in building out
our platform in 2024 and 2025.

Consequently, whilst we anticipate that both EBITDA and operating profit will
be below market guidance, we expect that the Company will remain profitable
after the usual adjustments for non-trading items. This outcome reflects the
necessary investments made to expand our operations and position the business
for future growth. Our decisions to make these strategic investments should
ensure that we are well-prepared to capitalise on upcoming opportunities and
continue our profitable growth trajectory.

Going forward, the Company remains well-positioned and well-funded for growth
in an exciting sector and with a customer base that clearly values the
services that the Company is able to provide.

 

Raluca Saceanu, CEO of Smarttech247, commented:

 

"As we continue to expand and strengthen our operations, our focus remains on
long-term, sustainable growth. We have achieved positive growth in revenue and
annual recurring revenue, and our current pipeline is strong. The strategic
investments that we have made are critical for supporting our future ambitions
and ensuring that we are well-positioned to capitalise on the significant
opportunities that the industry brings and the demand for our products. We
continue to be incredibly excited about the future for our business."

 

*Smarttech247 is a recognised vendor in 2024 Gartner® Market Guide for
Managed Detection and Response.

 

-Ends -

 

 

For further information please contact:

 

 Smarttech247 Group PLC                               Tel: +353 21 206 6033
 Ronan Murphy, Executive Chairman

 Raluca Saceanu, Chief Executive Officer

 Nicholas Lee, Finance Director
 SPARK Advisory Partners Limited - Nominated Adviser  Tel: + 44 (0) 20 3368 3550
 Mark Brady / Adam Dawes
 Shard Capital - Joint Broker                         Tel: +44 (0) 20 7186 9900
 Damon Heath
 Fortified Securities - Joint Broker                  Tel: +44 7493 989014
 Guy Wheatley, CFA
 Yellow Jersey PR                                     Tel: +44 (0) 20 3004 9512

 Charles Goodwin / Annabelle Wills / Bessie Elliot

 

 

About Smarttech247

 

Smarttech247 is a multi-award winning automated MDR (Managed Detection &
Response) company. Its platform is trusted by international organisations and
provides threat intelligence with managed detection and response to provide
actionable insights, 24/7 threat detection, investigation and response.

 

The Group's services are geared towards proactive prevention, and it achieves
this by utilising the latest technologies, along with an experienced incident
response team. In recognition of its innovative technology, Smarttech247 was
named by Chambers Ireland InBusiness Recognition Awards as Cyber Security
Company of the Year 2023.

 

Smarttech247's offices are located in Ireland, United Kingdom, Romania, Poland
and the USA. The Company was admitted to trading on the London Stock Exchange
on 15 December 2022.

 

For further information please visit www.smarttech247.com
(http://www.smarttech247.com)

 

*Gartner disclaimers

 

Market Guide for Managed Detection and Response, 24 June 2024, Pete Shoard,
Andrew Davies, Mitchell Schneider, Angel Berrios, Craig Lawson.

 

Gartner does not endorse any vendor, product or service depicted in its
research publications, and does not advise technology users to select only
those vendors with the highest ratings or other designation. Gartner research
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should not be construed as statements of fact. Gartner disclaims all
warranties, expressed or implied, with respect to this research, including any
warranties of merchantability or fitness for a particular purpose.

 

GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its
affiliates in the

U.S. and internationally and is used herein with permission. All rights
reserved.

 

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