7 September 2020
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
('Drumz' or the 'Company')
Further to the change of investing policy approved by shareholders on 30 June 2020, the directors of Drumz (DRUM.L) are pleased to announce that the Company has made its first technology investment in Acuity Risk Management Ltd, (‘Acuity’), which operates an award winning software business specialising in risk management.
Acuity’s business is the supply of its proprietary software, STREAM™, and services for cyber security and risk management, used by organisations globally for customers ISO 27001, GDPR, NIST Cyber Security Framework and other programs.
Drumz has invested £500,000 in cash for an initial 20 per cent. shareholding, in Acuity with an option to acquire an additional 5 per cent. for a further £125,000. As a condition of the transaction, Angus Forrest will become a director of Acuity.
The Acuity business was founded in 2005 by a team who had previously built a consultancy specialising in cyber security which was later acquired by Siemens. They encapsulated their knowledge in developing the STREAM™ software which was launched in 2007. This software enables a risk-based approach to cyber security, reducing the risk of security breaches, optimising cyber security activities and, in the event of a breach, mitigating damage through a strategic risk-based approach.
Acuity’s customers include government organisations, large and medium sized private enterprises in the UK, Europe, Africa and North America. Gartner reports the global market for Integrated Risk Management (‘IRM’) in 2020 to be $7.3 billion with projected growth to $9.3 billion by 2023. This is being driven by the development of new digital products and services designed to propel a company’s future growth. In turn this introduces new risks that require IRM technology.
Acuity regularly wins awards including in Information Age and TechWorld’s top cyber security companies in the UK supplying cybersecurity services to organisations globally. STREAM™ has been awarded a five star rating in the SC Media GRC, Risk and Policy Management Review for five consecutive years. In 2018, STREAM™ was Continuity, Insurance and Risk magazine’s cyber security product of the year.
The last published accounts for the Acuity business were issued by Acuity RM LLP for the 12 months to 31 March 2019 show that the business generated a profit before tax of £226,000 on revenues of £858,000. The net assets of Acuity RM LLP as at 31 March 2019 were £11,000. Acuity RM LLP transferred its business to Acuity earlier in 2020.
More information on Acuity can be found via the following link www.acuityrm.com
Angus Forrest, Chief Executive of Drumz, commented:
“We are delighted to have made this first investment in Acuity. Acuity is an established and well regarded player in the fast growing cybersecurity global market. With the additional expertise Drumz can bring to its investment we are confident that Acuity’s growth over the past year, will be accelerated over the next two to three years to transform its value.”
|For further information please contact:|
|Angus Forrest||+44 (0) 20 3582 0566|
|WH Ireland (NOMAD & Broker)||www.whirelandcb.com|
|Mike Coe / Chris Savidge||020 7220 1666|
|Peterhouse Capital Limited (Joint broker)|
|Lucy Williams / Duncan Vasey||020 7469 0936|
Note to Editors
Drumz plc (AIM): DRUM) is an investing company focused on investing in and acquiring established software businesses that own good technology, have quality customers and which could better exploit their assets and accelerate their growth with the injection of experienced management and new funds.
Drumz will, where necessary, make available some of its experienced management team and provide finance to facilitate the necessary changes, so that the value of the businesses in which Drumz invests will be transformed over a two to four year period. In due course, the new Directors expect to dispose of such businesses, in whole or in part, in order to realise value for Drumz and its shareholders.