Kape Technologies: FY 2017 results show solid growth

Kape Technologies plc | Published on 13/03/2018

Kape Technologies (formerly Crossrider) has reported revenue up 17.4% to U$66.4 million and Adjusted EBITDA of U$8.3 million (up 29%). Respectively, they are a touch above, and in line with, guidance given in January’s trading update. The Media and App Distribution businesses produced improved results, as anticipated. The year saw the acquisition and integration of CyberGhost as Kape honed its product focus to be B2C-driven and SaaS enabled. We expect to see an increase in recurring revenues as a result. The rebranding to ‘Kape Technologies’ as the umbrella for the Group’s products and services follows the significant changes made to the focus of the business to be a provider of cybersecurity solutions to consumers. The board has declared a special cash dividend of U$4.93 cent per share (its first dividend) amounting to U$7.0 million. The outlook statement notes a strong start to FY 2018E and confidence in meeting market expectations for the year. We reduce our FY 2018E revenue estimate by 6% but, given margin improvement, leave our Adjusted EBITDA number unchanged. We introduce FY 2019E numbers which include good EBITDA growth as we note the continued strong momentum in the Media and App Distribution businesses.

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