Certain information contained within this Announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 ("MAR") as applied in the United Kingdom. Upon publication of this Announcement, this information is now considered to be in the public domain.

28 April 2025

Smarttech247 Group PLC

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

Interim results

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, today announces its unaudited interim results for the six months ended 31 January 2025.

Financial highlights

·      Revenues increased by 21.4% to €6.49 million (six months to 31 January 2024: €5.35 million)

·      Recurring revenue in the period has increased by 32% compared to H1 2024, reflecting strong demand and continued expansion of our customer base. Annual recurring revenue ("ARR") has increased to €9.4 million by the end of the period compared to 31 July 2024. ARR is expected to increase further as a result of new contracts being won post period end.

·     Adjusted EBITDA of €128K (six months to 31 January 2023: €125K) - see note 5.  This excludes any income in relation to R&D tax credits which would be expected in the full year

·      The sales pipeline as at the period end has increased compared to the sales pipeline at the end of H1 2024

·     Cash balance of €1.9 million available at the period end - this does not include the proceeds from the sale of the Group's shareholding in Visibility Blockchain Limited ("Getvisibility") of €1.8 million which was received in April 2025 (31 July 2023: €3.3 million)

Operational highlights

·      Continued growth of the customer base in the UK, Europe and the USA

·      New multi-year contracts and additional sales secured:

o     three-year agreement with an Irish public sector agency, worth €860,000 in total, with the potential to extend by a further two years

o     an existing US pharmaceutical customer renewed its current contract for another year worth €300,000 per annum.

o     a new MDR contract over three years with a hospital in Ireland worth €150,000

o     the renewal for five additional years of a contract with a leading Irish university worth, in total, over €1 million

o     additional sales to an existing US pharmaceutical customer worth €150,000 over the next year

o     a new additional contract with an existing automotive client worth US$925,000 over three years.

·   Further development of the Group's technology and product offering, including VisionX, with a focus on enhancing its risk management features which will increase the value for customers

·    Implementation of an enhanced sales strategy with a focus on channel and strategic partnerships.  The sales pipeline is continuing to build in the Middle East and Switzerland

·      Appointment of Cavendish Capital Markets Limited as new corporate brokers

·      Numerous awards and industry recognition, including being shortlisted for the Best Managed Security Service at the SC Awards Europe, demonstrating excellence in managed security services. Smarttech247 also won two ESG awards

Post-period end

·      New multi-year contracts secured:

o     the extension of an existing contract with a major hospital in Ireland worth circa €500,000 over four years

o     appointed to a multi-year cybersecurity framework agreement with a major international London airport with a potential value of up to £7 million across all four suppliers over its five-year term

·      Successful Zero Day Con 2025 conference, organised and hosted by Smarttech247, was held in March 2025 with over 600 senior security executives and speakers from the FBI, National Cybersecurity Centre and other industry leaders

·      Sale of the Group's shareholding in Getvisibility to Forcepoint for €1.8 million in March 2025

·      Winner of the Most Socially Responsible Cybersecurity Firm and the Gender Equality Excellence Awards at the AI Magazine CSR awards

Raluca Saceanu, Chief Executive Officer of Smarttech247, commented:

"Smarttech247 has continued to execute its strategy in the six months to 31 January 2025, winning new multi-year contracts and contract extensions and growing recurring revenue by 32% compared to the prior period and increasing ARR to €9.4 million.

As the cybersecurity landscape continues to evolve and we see new threats daily, we are adapting our product offerings and technology to ensure we can meet our clients' vital cybersecurity needs.

We are also actively progressing the delivery of our new products and continue to build traction with international customers as evidenced by our growing sales pipeline. Importantly, we are also well funded to support our expansion strategy and the outlook for the remainder of the year is encouraging.    

The Board remains committed to delivering shareholder value and I look forward to updating the market on our further progress."

- Ends -

For further information please contact:

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 Company's services are geared towards proactive prevention, and it achieves this by utilising the latest in cloud, big data analytics and machine learning, along with an experienced incident response team. 

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

For further information please visit www.smarttech247.com

Chief Executive Officer's statement

Introduction

During the period under review, Smarttech247 has continued to make good progress, focusing on building out its platform and developing new products.

Operational review

Contracts

It has been a good start to the Company's 2025 financial year with multiple new contracts signed as highlighted below.

In August 2024, the Group signed a three-year contract, worth €860,000, with an Irish public sector agency, with the potential to extend the contract for a further two years.

In September 2024, a public tender worth €100,000 over three years was won and in November 2024, an existing US pharmaceutical customer renewed its current contract for another year, worth €300,000 per annum.

December 2024 was particularly busy and included a new MDR contract over three years with a hospital in Ireland worth €150,000 over the life of the contract, the renewal for five additional years of a contract with a leading Irish university worth, in total, over €1 million and additional sales to an existing US pharmaceutical customer worth €150,000 over the next year.

In January 2025, the Group entered into an additional contract with an existing automotive client worth US$925,000 over three years.  This new contract will see an Endpoint Detection & Response (EDR) solution integrated into the existing Managed Detection and Response (MDR) service already supplied to Smarttech247's automotive client. This new EDR solution is designed to detect, investigate and respond to threats on endpoint devices such as computers, laptops, and servers, enhancing the client's existing cybersecurity resilience.

Post-period end in March 2025, the Group announced the significant extension of an existing contract with a major hospital in Ireland worth circa €500,000 over four years which will involve the implementation of an EDR solution into the hospital's existing VisionX MDR platform.

In April 2025, the Group announced that it had been appointed to a multi-year cybersecurity framework agreement (the "Agreement") with a major international London airport. The Agreement has a total potential value of up to £7 million across all four suppliers over its five-year term, with a further one-year extension available. While the Agreement does not guarantee minimum spend, it establishes Smarttech247 as a trusted provider to one of the UK's most high-profile transport hubs, offering a significant opportunity to generate meaningful revenues over the life of the agreement. 

Smarttech247's success in winning these multi-year contracts reaffirms our position as a leader in cybersecurity services. These partnerships showcase the strength of our technology, especially the VisionX MDR platform, and the trust our clients place in our capabilities. By focusing on providing recurring revenue through multi-year contracts and high renewal rates for short-term projects, we ensure financial stability and growth for the Group. These achievements not only validate our service quality but also serve as strong reference points for future clients, supporting our continued global expansion and competitive differentiation.

Partnerships

Smarttech247 continues to work with several leading industry players whose products can be incorporated within its MDR platform as required. These partners include Forcepoint, Microsoft, IBM and Crowdstrike. 

Technology platform and innovation

Smarttech247 has continued to enhance and progress its technology platform and product offering.

People and platform

In September 2024, Smarttech247 announced an enhanced sales strategy designed to accelerate growth by introducing a new channel-based route to market. This approach will broaden our market reach and is a key component of our ambitious growth plans. To support this strategy, we have been investing in increasing headcount across our key geographical markets, strengthening our presence and capacity to serve clients worldwide. In particular, good progress is being made in building a presence in Switzerland and the Middle East.

This strategic shift will see Smarttech247 place greater emphasis on channel and strategic partnerships to target rapid expansion whilst enhancing customer value across its global customer base. In parallel with this initiative, the Company is also launching its Partnership Programme with incentives designed to empower partners and drive mutual growth, with a key focus on efforts to enhance Smarttech247's sales and service delivery with core strategic partners. Previously, the Company's strategy focused on direct sales to customers, but this new strategic shift will allow Smarttech247 to leverage the successful partnerships the Company has curated.

Smarttech247 is in advanced discussions with leading systems integrators and distributors to bring a range of its cybersecurity solutions, including VisionX MDR, to a broader market, aiming to strengthen the Company's presence in key regions and scaling operations to meet the growing global demand. This new programme will provide Smarttech247's partners with the tools, resources and support to help partners maximise revenue potential and deliver value to customers via incentives including financial rewards, co-marketing opportunities and access to training and certifications programmes.

To support this strategy, Smarttech247 has already been building out its platform and expects to increase its headcount further in Ireland and across other key markets over the next 12 months, expanding the Company's operations in technical support, sales, marketing and partner support.

Industry awards and profile

Post-period end on 11 March 2025, Smarttech247 hosted its Zero Day Con 2025 conference for the fourth time. This event brings together leading technology firms, industry experts and government officials to allow business leaders to learn more about the latest cybersecurity trends. This year was again a very successful conference with international cybersecurity industry participants from a range of industries attending, including senior professionals from the FBI, the Director of the National Cyber Security Centre, the CISO for the Americas at Louis Vuitton, the CISO of the Health Service Executive, as well as other industry leaders.

Financial review

In terms of financial performance, revenues have increased by 21.4% over the prior comparable period to 31 January 2024 as a result of the winning of several new contracts and the full-period impact of contracts won in the previous period.

The Group continues to make good progress with its strategy to build ARR which has increased to €9.4 million over the period. This is expected to increase further as a result of new contracts being won post period end.  The recurring revenue component in the period has increased by 32% compared to H1 2024. Annual revenue is still generally weighted more towards the second half of the year as demonstrated by past results.

Gross profit has increased as a result of increased sales, although gross margins have reduced slightly as a result of lower margins associated with third-party product sales within Group revenue.

Operating costs have increased compared to the prior period, principally as a result of the growth in headcount as part of the build out of the platform.  Also, the amortisation charge associated with the Group's intangible assets has increased during the period to reflect the completion of certain product development work.  Certain of the Group's costs continue to be capitalised as they relate to product development, in accordance with the Group's accounting policies. 

Adjusted EBITDA and operating loss have been calculated in order to exclude one off charges relating to items such as the costs associated with the issue of share options. These charges have been added back given that they are one off non-cash items (see note 5).

It should be noted that operating costs are relatively evenly spread over the year, whereas as described above, historically, revenues tend to be weighted towards the second half of the year which has historically led to a lower operating result in the first half of the financial period compared to the second half. 

Cash has reduced over the period due to the positive EBITDA generated during the period being offset by the continued investment in the development of products and technologies which is clearly necessary and important for a company in this sector. Whilst the Group's cash balance has reduced during the period, the Group still retains a substantial balance at the period end and this figure excludes the cash inflow of €1.8 million from the sale of the Group's investment in Getvisibility, which was received in April 2025.

During the period, the Group appointed a new broker Cavendish Capital Markets Limited, to help build the Group's profile with the market and investors.  The Group has also increased its level of shareholder engagement through a series of investor meetings and an investor webinar.

Outlook

Cyber-attacks are on the increase with serious consequences for the companies involved. Smarttech247's combination of artificial intelligence-led managed detection and response capabilities can help to significantly reduce the impact and help manage the situation. With the threat landscape growing in complexity, exacerbated by geopolitical tensions, the Company is well positioned at the intersection of three major evolving growth markets: security threat incidents, cloud adoption and cyber-security data generation. Cloud mitigation is causing companies to redesign its systems, leading to new cyber-security requirements which Smarttech247 can provide. There are therefore clear opportunities for the future growth of the Group using the platform that has been established.

The Group has continued its positive momentum into the 2025 financial year with increasing revenues in the first half of the year compared to the previous comparable period. Furthermore, with multiple new partnerships and contract wins, management is positive about the prospects for the second half of FY2025 and the year as a whole. 

Raluca Saceanu

Chief Executive Officer

28 April 2025 

*  See Note 4 for details on restatement made to cost classifications in the prior period.