ECSC exceeds its earnings target during outbreak

Cyber security firm ECSC, which counts Barclays, GCHQ and Virgin East Coast Trains among its high profile clients, said its Covid-19 target of operating on a break even earnings basis was achieved in May, exceeded in June, and further improved upon in July.
By Ros Snowdon
Published 5th Aug 2020, 16:45 BST
A cyber security research analyst at the ECSC Security Operations Centre in BradfordA cyber security research analyst at the ECSC Security Operations Centre in Bradford
A cyber security research analyst at the ECSC Security Operations Centre in Bradford

As a result of the continued growth, the Bradford-based firm has implemented a phased return of furloughed employees.

The group reported strong growth in recurring managed services revenues for the six months to June 30.

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Managed services recurring revenue rose 25 per cent to £1.2m. The managed services order book rose to £2.9m from £2.7m. Consulting revenue rose 4 per cent to £1.2m and group revenue was stable at £2.6m.

The group said its Covid-19 response has been led by the current medical and science-based advice, and guidance from the UK and Australian governments. ECSC said it has remotely delivered its full range of services, including 24/7/365 monitoring and incident response.

Ian Mann, CEO of ECSC, said: “I am pleased to report improved financial performance in a period that includes significant Covid-19 UK economic impact.

“Continued growth in managed services recurring revenue is a result of previously reported new client wins in addition to the successful contract renewals of all significant existing managed services.

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“I am also delighted that the group remained profitable in the period on an adjusted EBITDA basis. The steps taken in recent months by the board and management should position the group well for the remainder of the year.”

In April, the firm raised £500,000 through a share placing. At the time, the group said the cash would ensure it had sufficient capital to take advantage of longer term growth opportunities once the Covid-19 situation stabilises.

The firm recently reported a return to adjusted EBITDA profitability and cash generation.

This organic growth has been driven by market demand as a result of an increasing awareness of cyber security within corporate boardrooms and a company strategy to deliver cyber security services to meet the evolving challenges that its clients face.

ECSC said one of the impacts of Covid-19 has been a move to more remote and cloud-based working by organisations, which the directors believe will lead to an increased need for cyber security.

Related topics:Covid-19BarclaysBradford