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ECSC eyes EBITDA profitability in 2019 as client wins gather pace

Snapshot

  • Provider of cybersecurity services
  • Services include security management, consultancy and testing
  • 49 new clients secured in first five months of 2019
Cybersecurity

Quick facts: ECSC Group PLC

Price: 82.5 GBX

LSE:ECSC
Market: LSE
Market Cap: £7.51 m
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What ECSC does

ECSC Group PLC (LON:ECSC) is one of the UK’s longest-running providers of cybersecurity services. Established in 2000, ECSC specialises in 24/7 security breach detection and artificial intelligence (AI).

The company’s services range from security management and consultancy to testing services which uncover vulnerabilities and technology labs that develop new solutions.

 

 

How is it doing

In a trading update following its interims in September, the cybersecurity firm said the three business lines had seen organic growth of around 25% in the period, while for the fourth quarter to-date consulting bookings reached record levels.

ECSC has also recruited more sales partners, taking its total to 87, while cash at the end of October had also risen to £450,000 from £190,000 at the end of June.

As a result, the company said it expected its full-year results to be “broadly in line with market expectations”.

For the six months ended 30 June, ECSC reported an adjusted EBITDA loss of £190,000, down from a £490,000 loss in the prior year, while revenues had remained relatively steady, dipping to £2.63mln from £2.65mln.

Into the second half of the current year, the company also reported record revenues in July of £620,000, up 42% year-on-year, alongside an adjusted EBITDA profit of £100,000.

 

 

What the boss says – Ian Mann

“Despite some challenging UK economic conditions, the team has continued to win new clients, and deliver outstanding levels of client service, reflected in improved financial performance across the group”, Mann said in mid-November.

The increasing levels of cyber breaches, and strong demand across all ECSC cyber security services, positions ECSC very well moving into 2020", he added.

 

CEO Interview

 

Blue Sky

Looking ahead, ECSC expects new GDPR related fines for cybersecurity breaches were soon to be issued, which it expected would strengthen demand for cybersecurity services.

With the shares trading at around 92.5p as of 19 November 2019, ECSC carries a market cap of £6.8mln.

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ECSC Group pleased with strong recovery in consulting growth

ECSC Group PLC's (LON:ECSC) Ian Mann caught up with Proactive London's Andrew Scott to discuss their interim results to June 2019. The firm narrowed its losses in the first half, while sales in its consulting arm continued to grow into the second half. Mann says they've seen record levels...

on 11/9/19

2 min read