New rules on cyber attacks boost ECSC

Following high profile breaches at firms like mobile provider TalkTalk, new rules under the General Data Protection Regulations (GDPR) will come into force in May 2018. Any firms that are cyber breached after this date will face a fine of 4 per cent of their global turnover. TalkTalk was fined just £400,000, but if the cyber breach had occurred next June it would have faced a fine of around £72m.

Bradford-based ECSC, which counts Barclays, GCHQ and Virgin East Coast Trains among its high profile clients, is already talking to a number of blue chip firms that are keen to avoid cyber attacks. ECSC already looks after around 10 per cent of the FTSE 100.

ECSC's chief executive Ian Mann said media reports about firms like TalkTalk have made companies sit up and listen.

"Next year there will be a legal requirement to report breaches. It will be a criminal offence not to go public," he said.

"You won't be able to hide breaches anymore and people want to sign up. A lot of firms are saying 'We don't want to be caught out'.

"It damages your brand."

He was talking as ECSC ​reported strong organic revenue growth across all ​its divisions​ and said its headcount has grown from 57 at ​its flotation in December to 98.

The group said revenue in the 15 months to December 31 came in at £4.5m, up from £2.7m in the previous 12 months.

Adjusted pre-tax profit over the 15 months was £460,000 although the group made a loss of £520,000 over the period due to IPO costs of nearly £1m.

Mr Mann said the group is expected to return to profitable growth in 2018.

"This year is about ramping up growth and investing the proceeds. We averaged 20 per cent growth in turnover and gross profits before the IPO," he said.

"We are delivering on our plan and these are good results for 2016. We are running according to schedule and it's nice to come out with good news."

Last week the firm opened a new security operations centre in Bradford.

“It’s a good recruitment place because the cost of living in Yorkshire is significantly less than if you were based in London," said Mr Mann.

“There’s economic benefits for people to work in this region rather than working in London and there’s cost savings for us.”

He said that ECSC also has strong ties with Bradford University. The company helps the university with courses in cyber security and recruits graduates from the courses.

The group recently opened a new sales team facility in Leeds near the train station as this was seen as an easy place for people to commute to.

Mr Mann said ECSC has 17 years' experience behind it and customers trust the firm.

"Firms want someone with history and a good track record," said Mr Mann.

"We get a lot of personal recommendations and also from people who have moved to new jobs. The trust level is the key thing."

He added that the Government has committed itself to the new GDPR rules irrespective of Brexit.

Asked whether he has any worries about Brexit, he said: "There are concerns about what it will do to the economy, but we grew during the financial crisis. We are bullish about Brexit. We have a number of international clients. We are not dependent on the EU."