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CYBER 1 Cyber Security 1 AB ( publ ) Q1 2021 Interim Report January 1 - March 31 , 2021 CYBER1 turns a profit in Q1 as it continues to build margin growth and streamline operations Group Performance • Group Gross margin has increased year on year by 5.9 % which equates to a gross margin of 28.7 % in Q1 2021 . • • • • Group operating expenditure has been reduced significantly , due to the successful implementation of operational efficiencies across the group . This has resulted in a decrease of over 40.3 % to € 2.07m , versus the € 3.47m in Q1 2020 . As indicated in previous reporting , the benefits of harmonisation initiatives have now taken effect within the organization , increasing the overall profitability of the company . Following analysis of company operations , the executive has implemented effective measures into the parent company and wider subsidiaries , that have increased greater efficiency and tighter corporate governance controls . Further quarterly results will aim to see these benefits of the harmonisation initiatives to the profitability of the company . Total Group revenue closed for CYBER1 during Q1 2021 was € 7.93m . Group EBITDA profit of € 252k , compared to a loss of € -1.26m in Q1 of 2020. This change has been a result of greater operational efficiencies that have been realised during the reconstruction process throughout the last twelve months , in addition to improved margins on service and additional revenue streams . Whilst the effect of the global pandemic are still ongoing , due to the increase utilisation of professional services and partnerships with vendor solutions , CYBER1 has seen an overall stronger margin blend for the business . Combined with the streamlined operations within the parent company and the subsidiaries , the company has been able to position itself positively for the coming financial year . Subsidiary Performance • • DRS recorded revenue of € 5.2m EUR in Q1 2021 , versus € 6.4m in Q1 2020 . Credence Security Middle East & India recorded revenue of € 2.1m in Q1 2021 , versus € 1.7m in Q1 2020 . • Credence Security South Africa recorded Q1 2021 revenue of € 286k in Q1 2021 , versus € 284k in Q1 2020 . • Protec ( Kenya ) recorded Q1 2021 revenue of € 159k , versus € 317k in Q1 2020 . Beyond the Quarter & Other News • • Beyond the quarter , CYBER1 filed for the composition hearings with the Stockholm District Court , pursuant to the ongoing company reconstruction , with a proposal of a compulsory composition . The Company plans to carry out a rights issue as part of the initial steps for exiting the reconstruction process . Following the Company's press release on 11th May 2021 informing on the Company's application for a composition hearing ( Sw ; ackordsförhandling ) aiming at concluding the reconstruction process , the court has decided that the composition hearing will take place on the 7th of June 2021 , at 15:00 local time at Scheelegatan 7 , Stockholm . On May 17th 2021 , CYBER1 announced that short term interim operating capital of 500k euros has been secured from existing shareholders . The lenders shall have the right , instead of cash repayments , to set off the loan claims against new shares and warrants on terms equal to the planned rights issue broadly outlined in a press release on 11th May 2021 , where the rights issue is subject to certain developments around the composition filing and shareholders ' approval at an extraordinary shareholders ' meeting . The loan will constitute general rights of priority ( Sw . allmän förmånsrätt ) according to the Rights of Priority Act ( Sw.förmånsrättslagen ) . Administrator Marcus Wenner , of the corporate restructuring proceedings , has approved the taking on of the loan by the Company .