Record half year results for digital security and privacy software group
Kape Technologies, the AIM-listed Isle of Man-based digital security and privacy software business, enjoyed a record six month period, it announced today.
Results for the six months to June 30, 2022, showed that revenues were $302.396m, up from $95.502m a year ago, while pre-tax profits of $46.2m compare with $7.5m in 2021.
At June 30, 2022, the group had cash of $62.9m, compared with $27m at December 31, 2021, net assets of $917.3m (December 31, 2021: $863.5m), and net debt of $391.9m (December 31, 2021: $457.5m).
There was strong growth in recurring revenues to $268m, an increase of 353.5%.
Kape said ongoing demand for privacy and security products continues to drive both new customer growth and upsell opportunities from existing subscribers. Its privacy segment revenues grew 19% on a pro forma organic basis, with the security division growing 15.7%.
It said it has made exceptional progress integrating ExpressVPN, the highly earnings accretive acquisition which significantly scales the group. Kape has created unified teams across the privacy business, and is on track to realise $9m in synergies in 2022.
The content division, based on the Webselenese acquisition, is delivering growth and support for the business, generating significant organic growth, with revenues up 25% on a pro forma basis.
The group expects to generate revenues for the year ended December 31, 2022, of between $610-624m and pro forma adjusted EBITDA of between $166-172m.
It said it is in the early stages of considering with its syndicate of lending banks the possibility of materially upsizing the group’s debt facilities to provide it with greater flexibility in its capital resources to pursue attractive future value-creation opportunities should they arise.
Chief executive, Ido Erlichman, said: “Our excellent operational and financial progress across H1 2022 has underpinned a period of record profitable growth for Kape, reinforcing our widely recognised status as a leading player in the global digital privacy and security arena.
“We are experiencing growing demand across our full range of product suite, reinforced by our premium service offering. This is testament to the efforts of the entire Kape team who have worked tirelessly to deliver cutting-edge products to market and drive innovation.”
He added: “From the successful integration of ExpressVPN to expanding our burgeoning product stack, we believe we are now ideally placed to capture the global demand from individuals who want to grow their control over their digital lives.”
