Wednesday 6 November 2019 8:31 am

Cybersecurity firm Sophos posts loss ahead of £3bn sale

Cybersecurity firm Sophos today posted a loss for the first half of the year, blaming restructuring and legal costs.

The UK listed firm is set to be taken private after accepting a £3bn takeover bid from US private equity firm Thoma Bravo last month. 

It today announced a loss before tax of $1.5m (£1.16m) for the six months to 30 September, which it said was due to restructuring and legal costs.

Read more: Sophos shares jump as it announces £3bn US private equity buyout

It said its $26m profit in the first half last year was also boosted by an exceptional credit.

Reported group revenue of $365.8m grew five per cent year-on-year and eight per cent at constant currency.

It said exceptional items were a net expense of $14.3m during the period compared to a net credit of $5.5m in the prior year.

Sophos said its expenses arose as a result of restructuring costs, legal costs and legal and professional fees incurred in connection with a review of “apparent non-compliance with certain regulatory matters pertaining to the use of some of the group’s products in certain overseas territories”.

Read more: City of London police chief urges banks to report cyber attacks

Sophos shareholders are yet to approve Thoma Bravo’s offer of $7.40 per share to take the company private.

Chief executive Kris Hagerman said: “Our performance in H1 FY20 shows the continued progress we are making towards fully transitioning our business to next-generation cybersecurity.  

“As we pursue this strategy, we are benefiting from our advanced capabilities and investments in the cloud, machine-learning, APIs, synchronized security, automation, managed threat response and more, to deliver enterprise-grade protection to organisations of any size.”