Join our community of smart investors

Cyber security demand sends billings soaring at Sophos

The digital security giant posted higher sales across its territories and product types

As organisations increasingly embrace mobile devices and conduct business online, hackers and data thieves are jumping for joy. Recent cyber attacks on companies such as LinkedIn (US:LNKD) and TalkTalk (TALK) have fuelled demand at Sophos (SOPH), which provides end-user and network security software to more than 220,000 organisations worldwide. The upshot was adjusted cash profits of $121m (£82.4m) in the year to March, up almost a third at constant currencies.

IC TIP: Buy at 230p

The group's statutory losses (see table) reflect around $42m in one-off listing and litigation costs. Strong demand for its 'unified threat management' products propelled comparable network billings up 28 per cent, while upgrades to its cloud platform helped to drive end-user billings up 13 per cent. Indeed, like-for-like billings rose more than 15 per cent in all three of the group's territories.

To continue reading...
REGISTER FOR FREE TODAY
  • Read 3 articles for free each month
  • Educational articles and topical investment guides
  • In-depth podcast episodes by our writers and industry professionals
  • Interactive live webinars on investment themes that matter
Have an account? Sign in