Cyber security firm ECSC reported a loss in 2017 after experiencing “a number of challenges” that have had a detrimental effect on its results.
The Bradford-based group has experienced delays converting its sales pipeline into committed orders and said it has seen disappointing growth in revenue.
The company said it had achieved organic revenue growth of 9.5 per cent to £4.12m. It reported an operating loss, pre-exceptionals, of £3.17m.
Ian Mann, CEO of ECSC, commented: “Our first year as a public company has been a period of significant change for the group. We have delivered on our planned investment and achieved growth, but we have experienced a number of challenges.
“These have had a detrimental effect on reported performance. During the year we have invested heavily to drive growth in the business. Our consulting resources and sales team have been expanded and we now have a full 24 hours security operations capability with the opening of our new centre in Brisbane, Australia. We have
continued to invest in the proprietary software embedded in our managed security devices at the heart of our managed services offering. All of this has been achieved in line with the plans we set out at the time of the IPO.
“However, the rate of revenue growth has been significantly less than expected in our plans. As we reported during the year, corporate decision-making cycles have been longer than anticipated, especially in managed services. This has delayed conversion of the sales pipeline. As a result, our revenues and profits have fallen short of the levels planned at the IPO.
“In response to this situation, the board took action to reduce costs, bringing down operating losses and the rate of cash burn. However, we have done this in ways which protect key revenue generating resources, thereby providing a platform that has the best chance to deliver future growth and shareholder value.
“Despite these challenges, I am encouraged that further growth can be achieved in 2018. Our clients continue to recognise the growing importance of cyber security and the market is developing in ways favourable to our skills and offerings.”