SHARE PUNT OF THE WEEK

WHO IS IT? Falanx is a cyber security business which provides defence services to governments and business. It is listed on AIM, and floated three years ago.

WHAT’S THE LATEST? This week the business said it was launching a new business unit. The technology development hub, based in Birmingham, will develop prototypes of new technology based on intelligence gathered by the teams which monitor and respond to threats. Falanx said it is on track to achieve profitability in its next financial year. In its latest business update Falanx said it had secured a contract worth £136,000 a year with a major IT firm, and another worth £130,0000 with a major UK bank.

WHO BACKS IT? The largest shareholder in the firm is Steven Myers, co-founder of stockbroker Winterflood Securities. He started snapping up more shares last year and now owns 21.7m, giving him a 10.1pc stake in the firm. Myers is understood to have met the firm’s chief executive and chairman to discuss their plans for the business, and must be happy with their strategy to retain his position.

WHY YOU SHOULD INVEST Cyber security is big business, and something Chancellor Philip Hammond is particularly passionate about. Last year he pledged to spend an extra £1.9bn fighting cyber attacks. It’s estimated that this year companies will spend around £78bn protecting themselves. Businesses which can prove themselves capable of providing secure systems to companies can quickly become invaluable.

. . . AND WHY YOU SHOULDN’T While first mover status – that is, a company which is a pioneer in its field – is always an advantage in technology, this is a sector with strong competition where new threats are springing up every day. The pressure is really on for firms such as Falanx to keep their product secure and up to date – it only takes one data breach for a firm’s reputation to crumble overnight.