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 its results for 2018, the company reported the turnover had risen to £5.4mln from £4mln with underlying losses reduced to £0.6mln from £2.9mln.
The firm’s consultancy arm had also added 95 new customers over the year as companies strengthened their cyber defences to avoid heavy fines under new GDPR rules.
Meanwhile, in a trading update in June the company 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.
The group’s Managed Services division had also 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.
What the boss says – Ian Mann
Commenting on the trading update, ECSC’s chief executive Ian Mann 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.
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 72.5p as of 1 July 2019, ECSC carries a market cap of £6.6mln.