Sophos (SOPH) is a UK cyber security group selling anti-virus and encryption software to mid-sized and small companies. It floated in 2015 and has a market cap of over £3bn. Revenue for the year ending 31/3/2017 was $529.7m (+10.8%) with a loss of $46.7m (2016: -$71.9m). The Sophos Central console now has more than 45,000 customers, and Intercept X, a next generation endpoint and anti-ransomware product, won over 8000 customers in two quarters since its launch. It is a subscription-based business with 81% of billings coming from 28-month subscriptions, giving good visibility and strong cash flow as payment is made up front. Operating profit adjusted for exceptional items was $38.3m in 2017, down $15.1m: rapid billings growth has a short term negative effect on profitability as most of the revenues are deferred but the spending is recognised as incurred. 43% of billings are in Americas and 50% in EMEA. Cyber security solutions is a fast growing global market as businesses increasingly move to cloud-based security infrastructure. The share price is on a demanding rating with a P/E of 104 reflecting Sophos’ status as an industry disrupter and has the potential to go even higher were the Company to achieve global market leadership.