Cyber Security 1 (CYB1) Q4 2024 earnings summary

Executive summary

• Group revenue for H2 2024 declined 23% year-over-year to €21.3m, mainly due to delayed government tenders and underperformance in Trinexia DMCC.

• Full-year 2024 revenue decreased 5.4% versus 2023, with strong H1 offset by H2 challenges.

• Strategic focus shifted to profitable African and Southern African entities, with downsizing in the Middle East.

• The company is executing a transformation strategy to ensure long-term profitability and resilience.

Financial highlights

• H2 2024 EBITDA was -€1.75m, down from €228k in H2 2023; full-year EBITDA was -€1.4m.

• H2 2024 net loss was -€4.1m (H2 2023: -€0.87m); full-year net loss was -€4.1m (2023: -€0.83m).

• Gross margin for H2 2024 was 20% (down from 23% in H2 2023); full-year gross margin was 21%.

• Operating margin for H2 2024 was -15.6% (H2 2023: 0.1%).

• Cash outflow from operations for 2024 was -€2.2m; closing group cash balance was -€710k.

Outlook and guidance

• Management expects continued growth in profitable entities, especially in Africa and Europe, with a focus on managed services and Next-Gen SOC.

• Cost reductions and operational streamlining are planned for 2025 to improve profitability.

• The company remains optimistic about market opportunities as economic conditions stabilize and delayed deals close in 2025.