Growing acceptance of Arqit cloud-based services
Arqit has developed secure encryption based on the cloud-based agreement of pairs of symmetric keys at end points, a solution to the limitations and frailties of Public Key Infrastructure (PKI), the basis of current encryption processes. Having successfully demonstrated secure key agreement across cloud-based facilities and a wide range of OEM applications, Arqit has now recorded a number of adoptions of its Symmetric Key Agreement Platform (SKAP) amongst telecoms service providers and in the financial services sector.The group’s current positioning and the increasing interest it is reporting from vendors, partners and distributors can be traced to it having declared compliance with the National Security Agency Commercial Solutions for the Classified Symmetric Key Management Requirements. Encouragingly, the NSA sits at the heart of US security interests and has far-reaching influence.
For the year to 30 September 2023, Arqit reported QuantumCloudTM revenue of US$0.69m from 7 contracts, with US$4.96m from discontinued operations (FY22: US$7.21m and US$12.84m from discontinued operations). Market demand for data encryption and network and data security continues to grow, having reached US$169bn by 2022 and estimated to be US$262bn by 2026 (Gartner Group).
Examining sector market valuations in order to address the question of valuation, we suggest a hypothetical future benchmark Arqit revenue base of US$100m which, if achieved, would cross-refence with market EV/Revenue to indicate an equity Fair Value of US$9.2 per share.
Equity Development enables companies to become better understood and supported by investors. Since our launch in 1996 we have consistently focused on helping our clients improve their communication and relationships with both existing and potential shareholders. Our clients have come from a wide variety of sectors and domiciles, are both private and quoted and range in size from micro-cap to $multi-billions. We offer free access to company research notes written by experienced analysts. These notes include detailed forecasts, financial models and a fair value. We host regular Private Investor Forums at which investors have the opportunity to hear company directors present, and to ask questions. These are free to attend. We broadcast live Webinars with company management that include active Q&A. We also make the recordings available online. We arrange face to face meetings between private investors and company management. We are active users of Twitter, commenting daily on company news, share price moves, Directors’ Dealings, Equity Development Research Notes & Events.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.