Hardware sales drag down KHIPU’s FY25 results
The MSSP group intends to double down on its cyber and AI capabilities moving forward
KHIPU Holdings has reported an annual turnover drop for the year ended 31 December, despite continued investment across its cyber and AI capabilities.
The Hampshire-HQ cybersecurity group’s revenue fell 9.6 per cent to £40.2m, down from £44.4m at the same time the year prior.
On the other hand, adjusted EBITDA increased 13.6 per cent to £1.2m and gross profit rose 10.3 per cent to £14.15m.
KHIPU Holdings is the parent company of UK-based MSSP KHIPU Networks, KHIPU Africa and KHIPU Networks South Africa, all of which are wholly owned by the group.
KHIPU Networks and its South African counterpart act as the group’s operating businesses, while KHIPU Africa is an intermediate holding company.
The group’s UK branch, KHIPU Networks, recorded a stronger earnings dip during the period, with turnover falling 11.9 per cent from £39m to £34.4m.
Adjusted EBITDA declined 5.2 per cent to £1.3m while gross profit rose 8.7 per cent to £11.9m.
Its consultancy top line edged up from £2.53m to £2.57m, while maintenance income plummeted from £5.7m to £4.1m.
Hardware sales, by far its largest revenue stream, fell from £30.7m to £27.7m.
KHIPU Networks increased its average workforce from 85 to 92 during the year.
KHIPU’s cyber and AI focus
The group reportedly increased its focus on AI and cybersecurity during the year as it established a dedicated team focused on risks stemming from the adoption of the technology and secured NCSC Cyber Incident Response certification and CREST membership.
It also continued developing its proprietary Source of Truth platform, integrating AI into the technology alongside its customer-facing cyber services.
The group is also using GenAI internally to improve productivity, while investing in AI governance and staff training.
KHIPU targets UK and South Africa
Moving forward, KHIPU said it remains focused on organic growth across the UK and South Africa.
The group plans to continue investing in its cybersecurity portfolio, proprietary technology and AI capabilities.
It also highlighted its Broad-Based Black Economic Empowerment (B-BBEE) programme as an opportunity to expand further in South Africa and internationally.
B-BBEE is a South African government scheme aimed at increasing Black participation in the country’s economy.
KHIPU has also expanded several areas of its portfolio following the financial period.
Earlier this month, it extended its AI-powered red teaming offering through a partnership with Horizon3.ai.
In August, it secured a suite of Palo Alto Networks specialisations spanning its UK and South African operations.
A month earlier, the company renewed its managed cybersecurity partnership with Hart District Council to provide round-the-clock security monitoring and threat response.