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ECSC increases rate of new client wins in first part of 2019, reiterates full-year guidance

The cyber security firm said it had secured 49 new client wins in the first five months of the year, an increase on the rate for 2018
Cybersecurity
The company also expected new GDPR related fines for cybersecurity breaches to boost demand

ECSC Group PLC (LON:ECSC) has increased its rate of new client wins in the first part of 2019 as it reiterated its forecasts for the full year.

In an update to be delivered at its AGM on Wednesday, the cybersecurity firm said it had secured 49 new client wins in the first five months of the year, an increase on the rate for 2018, while its Channel Partner Programme, launched at the end of last year, had already recruited 40 partners and was producing new client wins with its contribution expected to accelerate throughout the year.

READ: ECSC surges as three contract wins underpin revenue expectations for 2019

In terms of performance, ECSC said its overall revenues in the year-to-date had been flat compared to 2018, when it had reported overall growth of 35%.

The company said it believed continued economic uncertainty in the UK was dampening demand and delaying some projects, however despite the perceived slowdown the group’s Managed Services division, which includes recurring revenues, had performed strongly in the first five months with year-on-year growth of 60%, with recurring revenues up 29%.

As a result of the performance, ECSC said it expected its 2019 revenues to be “broadly in line” with market expectations as well as being EBITDA profitable for the full year.

The company also said that new GDPR related fines for cybersecurity breaches were soon to be issued, which it expected would strengthen demand for cybersecurity services.

Ian Mann, ECSC’s chief executive, said the firm was “delighted” by how quickly its partner programme was generating new client wins and revenue, adding that the company was “well positioned” to build on the organic growth achieved in 2018.

Mann also said the group remained confident of generating further strong revenue and profit growth in its 2020 financial year.

In mid-morning trading on Wednesday, ECSC's shares were 3.2% lower at 75p.

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