Final Results - Year ended 31 December 2015

Press Release 25 April 2016 Crossword Cybersecurity plc ("Crossword" or the "Company") Final Results Crossword Cybersecurity Plc (ISDX: CCS), the technology commercialisation company focusing exclusively on the cyber security sector, today announces its Final Results for the year ended 31 December 2015. Highlights * identified over 500 cyber security research projects from over 50 UK and European universities * commercialisation relationships formed with University of Warwick, Bristol University, City University London and Coventry University * launched our first product, Rizikon, a cyber risk assessment product based on research carried out by City University, London * became a founding member of CyberInvest, the GBP6.5m GCHQ and Department of Culture, Media and Sport initiative to boost world class UK cyber security * raised GBP1.5m in a placing to pursue cyber security intellectual property transfer deals * admitted to trading on the ISDX Growth Market Commenting on the final results, Tom Ilube, Chairman of Crossword Cybersecurity PLC, said "We are delighted to report excellent progress in establishing the UK's only specialist cyber security technology transfer company. The response from research focused universities has been very positive towards working with us and there is a tremendous pipeline of leading edge cyber security research projects to explore. Our first product, Rizikon, launched and we are excited about its commercial potential. - Ends - Further information, please contact: Tom Ilube ISDX Corporate Advisor CEO Nick Michaels and Jon Isaacs, Alfred Henry Crossword Cybersecurity Corporate Finance Limited Tel: +44 (0) 208 973 2350 www.alfredhenry.com Email: tom.ilube@crosswordcybersecurity.com Tel: +44 207 251 3762 About Crossword Cybersecurity Crossword Cybersecurity is a technology commercialisation company focusing exclusively on the cyber security sector. Crossword works with research intensive European university partners to identify promising cyber security intellectual property (IP) from research that our industry partners tell us meet emerging real-world challenges. Our specialist cyber security software engineering team work with our university partners to develop the research concept into a fully fledged commercial product that we then take to market. www.crosswordcybersecurity.com www.rizikon.io www.twitter.com/crosswordcyber BUSINESS REVIEW I am pleased to report a strong year of progress as we continue to develop Crossword Cybersecurity PLC's specialist cyber security technology transfer business. The challenges of cyber security continued to grow throughout 2015. TalkTalk in the UK suffered a high profile cyber breech resulting in 157,000 customer's personal details being accessed. The European Central Bank's website was compromised. Ashley Madison, the online dating site, lost 32 million client's data. In the USA, the Office of Personnel Management suffered a huge data breech resulting in the loss of 22m Federal employees' data and more recently Mossack Fonseca had 11.5m very sensitive documents stolen. To help address these challenges, Crossword works with universities to identify leading edge research in cyber security and establish intellectual property (IP) and technology transfer deals with the university to commercialise their research. We started the year by launching CLUE, a comprehensive database of cyber security projects taking place across UK universities, working with the Partnership for Conflict, Crime & Security (PaCCS), a Research Council UK (RCUK) initiative. CLUE covers over 500 cyber security research projects from over 50 UK and European universities. CLUE provides us with a comprehensive view of the cyber security academic research landscape and enables us to identify the universities with the most compelling cyber security projects. During the year Crossword established relationships with a number of major cyber security research universities. In January we signed a commercialisation agreement with Bristol University in the area of cryptography. This was followed in February with an initiative with the University of Warwick to jointly explore commercial opportunities in the security aspects of blockchain technologies. April resulted in the signing of a licence agreement with City University, London for their cyber risk assessment intellectual property. In November we agreed to work with Coventry University to commercialise their advanced network monitoring research aimed at the Internet of Things and Smart Cities. By mid-year we started to see the fruits of these relationships. Our first IP based commercial product, Rizikon, a cyber risk assessment tool based on City University's research, was announced in 2015 and we started the process of seeking large scale distribution partners for this product. Given Crossword's leadership role in the industry to drive forwards commercialisation of UK cyber security research, in November we became a founding member of CyberInvest, the GBP6.5m GCHQ and Department of Culture, Media and Sport initiative to boost world class UK cyber security. On the corporate front, in June we raised GBP1.5m in a placing to pursue cyber security intellectual property transfer deals and in September Crossword's ordinary share capital was admitted to trading on the ISDX Growth Market in London. We have ambitious plans for the year ahead and Crossword is well positioned. We believe that we have quickly established a strong reputation and carved out a distinct cyber security niche in the wider technology transfer sector. We are building up a network of commercial partners to distribute our IPR based products as they emerge from our development pipeline and we expect to see revenue growth through 2016 and beyond. We aim to add new university partnerships both in the UK and in Europe and we will start to raise our profile amongst the cyber security community in the USA too. We intend to continue to strengthen the Crossword team with additional industry leading security professionals to further reinforce our position as the experts in the cyber security technology transfer sector. PRINCIPAL RISKS AND UNCERTAINTIES The key risks to the group are as follows: * failure to develop an appropriate commercial application for its developing products; * failure to obtain sufficient financial support to enable such products to be adequately delivered; * failure to establish commercialisation partnerships with leading research universities * competition from existing IP transfer businesses seeking to engage in cyber security commercialisation activity * failure to commercialise the products that it develops. At present the directors are pleased with progress in both of these areas and consider these risks are sufficiently mitigated. FINANCIAL AND NON FINANCIAL KEY PERFORMANCE INDICATORS The directors consider the key financial performance indicator to be cash 'burn rate'. At present they consider that this is within reasonable parameters and will continue to monitor this is the future. At this stage in its development, the directors do not consider that there are any relevant non-financial key performance indicators. T Ilube Director 25 April 2016 Consolidated Statement of Comprehensive Income for the year ended 30 April 2015 Year ended 31 December 6 March 2014 to 31 2015 December 2014 GBP GBP TURNOVER - 20,613 Cost of sales (247,630) (54,142) --------- -------- GROSS LOSS (227,017) (54,142) Administrative expenses (530,414) (184,538) Interest receivable 2,181 - --------- -------- LOSS BEFORE TAXATION (755,250) (238,680) Tax expense - - --------- -------- LOSS FOR THE YEAR/PERIOD (755,250) (238,680) Other comprehensive income --------- -------- Total other comprehensive expenditure (1,659) (1,282) --------- -------- TOTAL COMPREHENSIVE LOSS (756,909) (239,962) ========= ======== EARNINGS PER SHARE Basic loss per share (GBP0.38) (GBP0.15) Consolidated Statement of Financial position at 30 April 2015 Group Group GBP GBP 2015 2014 ASSETS NON-CURRENT ASSETS Property, plant and equipment 3,635 5,486 Intangible assets 816 - Investment in subsidiaries - - --------- -------- Total non-current assets 4,451 5,486 --------- -------- CURRENT ASSETS Trade and other receivables 43,464 44,112 Cash and cash equivalents 1,227,481 445,163 Total current assets 1,270,945 489,275 --------- -------- TOTAL ASSETS 1,275,396 494,761 --------- -------- EQUITY Attributable to the owners of the company Share capital 119,173 79,697 Share premium account 2,080,827 620,303 Retained earnings (993,930) (238,680) Translation of foreign operations (2,941) (1,282) --------- -------- Total equity 1,203,129 460,038 --------- -------- LIABILITIES CURRENT LIABILITIES Trade and other payables 72,267 34,723 --------- -------- Total current liabilities 72,267 34,723 --------- -------- --------- -------- TOTAL LIABILITIES 72,267 34,723 --------- -------- --------- -------- TOTAL EQUITY AND LIABILITIES 1,275,396 494,761 --------- -------- Consolidated Cash Flow Statement for the year ended 30 April 2015 2015 2014 GBP GBP CASH FLOWS FROM OPERATING ACTIVITIES Cash generated from operations (715,170) (247,966) --------- -------- --------- -------- NET CASH OUTFLOW FROM OPERATING ACTIVITIES (715,170) (247,966) --------- -------- CASH FLOWS FROM INVESTING ACTIVITIES Purchase of non-current assets (853) (5,589) --------- -------- NET CASH OUTFLOW FROM INVESTING ACTIVITIES (853) (5,589) --------- -------- CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of shares 1,500,000 700,000 --------- -------- NET CASH INFLOW FROM INVESTING ACTIVITIES 1,500,000 700,000 --------- -------- NET INCREASE IN CASH AND CASH EQUIVALENTS 783,977 446,445 FOREIGN CURRENCY TRANSLATION DIFFERENCE (1,659) (1,282) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 445,163 - --------- -------- CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 1,227,481 445,163 ========= ======== NOTES TO PRELIMINARY RESULTS FOR THE PERIOD ENDED 30 APRIL 2015 1. The financial information set out above does not constitute statutory accounts for the purpose of Section 434 of the Companies Act 2006. The financial information has been extracted from the statutory accounts of Crossword Cybersecurity Plc and is presented using the same accounting policies, which have not yet been filed with the Registrar of companies, but on which the auditors gave an unqualified report on 25th April 2016. The preliminary announcement of the results for the year ended 31 December 2016 was approved by the board of directors on 25th April 2016. Crossword Cybersecurity plc

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