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ECSC Group hits breakeven earnings as managed services revenue rises, appoints new CFO and CTO

The cybersecurity specialist also said it did not anticipate any disruption to its ability to deliver services from the coronavirus pandemic

ECSC Group PLC - ECSC Group hits breakeven earnings as managed services revenue rises, appoints new CFO and CTO

ECSC Group PLC (LON:ECSC) said its full-year 2019, underlying earnings (EBITDA) hit breakeven as revenues surged in its managed services business.

In its results for the 12 months ended 31 December, the cybersecurity specialist reported flat EBITDA figure compared to a £600,000 loss in the prior year, while revenues rose by 10% to £5.9mln.

READ: ECSC secures two ‘major’ contract wins

The group said its managed services arm reported a 48% revenue surge to £2.6mln, while recurring revenues in the division increased by 27% to £1.98mln.

ECSC also said it had secured 118 new clients for its consulting services during the year compared to 95 in 2018.

Looking ahead, the firm said its overall revenue growth for the first quarter of the year is expected to be around 9% while consulting sales in the period were up by over 15% year-on-year.

The company said it did not anticipate any disruption to its ability to deliver services from the coronavirus pandemic, although it did anticipate “some reduction in consulting activity” as projects were delayed and meetings cancelled.

The company also said it was withdrawing its market guidance for 2020 and 2021 due to “the uncertainty in the market”.

“Whilst the current [coronavirus] situation has the potential to impact the global economy, we predict that as organisations move rapidly to remote and cloud working, there will be an increase in cybersecurity incidents, and therefore potential increases in demand for some ECSC services", chief executive Ian Mann said in the results statement.

In a separate announcement, ECSC also said it has appointed Gemma Basharan and Ian Castle to the board as its chief financial officer and chief technology officer, respectively.

"Gemma and Ian have been contributing to the senior management team over many years, and more recently attending PLC board meetings.  Their combined experience within ECSC and skills generally will further enhance the operation of the Board", Mann commented.

Quick facts: ECSC Group PLC

Price: 65 GBX

LSE:ECSC
Market: LSE
Market Cap: £6.5 m
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