Cybersecurity Company Kape Reports Pivot Bolstered Core Revenues

London-listed cybersecurity startup Kape Technologies PLC has published its first-half unaudited financial results for 2018 on Monday, reporting revenues of $27.8 million, down 7.6% compared to $30.1 million in the first half of 2017. The company stated its revenues from core activities were up 14.2% year to year, and its adjusted EBITDA was up 45.1% to $4.3 million.

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Founded in 2011 as Crossrider PLC, Kape pivoted to the cybersecurity domain and changed its name in March. The company employs around 300 people in offices in London, Tel Aviv, Germany, Romania, and Cyprus. Kape trades on the AIM sub-market.

The company credits the growth in its recurring revenue base to its transition to a SaaS-based business. In 2017 it acquired CyberGhost, a company developing software for VPN services. In July, the company completed the $16 million acquisition of cybersecurity SaaS business Netural Holdings Ltd., trading as Intego. Also in July, the company completed the sale of its media division to Ecom Online Ltd.

According to its statement, as of 30 June 2018, Kape had a cash reserve of $62.7 million, net assets of $74.2 million, and was is debt free.