- Falanx Group's tpurnover for the six months ending 30 September was £0.97m - down from £2.18m last time.

Falanx said this reduction reflected the completion of the first phase in May of a major Falanx Resilience contract for a Middle Eastern government. The second phase has been delayed by senior management restructuring, however the board anticipates that it will commence in early 2015. Falanx Intelligence's revenues of £0.8 million (2013: £0.8 million) have produced a higher operating profit margin of 10% compared to 6% over the same period in 2013. This was achieved through efficiencies leading to a reduction in overheads.

Falanx expects to continue to achieve this margin and also to increase revenues in the next six month period as a result of the improved marketing and sales effort. It adds: "Of our three Divisions, both Falanx Intelligence and Falanx Resilience made a profit in the reporting period - £90k and £40k before tax respectively. Following the launch of our cyber defence services in Q4 2014, we continue to expect Falanx Cyber to become profitable in mid 2015." The operating loss for the group was £709,269 (2013: profit - £35,083) and the loss before taxation was £708,997 (2013: profit - £3,150).

It adds: "During this period we invested £0.4 million in developing our Cyber Defence team and operational capability bringing the total invested in Cyber Defence to over £0.9 million to date. The C-SOC is now operational and is starting to deliver returns."

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