ECSC Group PLC – Interim Results

ECSC Group PLC – Interim Results

ECSC Group plc (AIM: ECSC), a provider of cyber security services, announces its unaudited interim results for the six months ended 30 June 2019 and an update on current trading.

Highlights

·     

Managed Services division revenue up 63% to £1.24m (2018: £0.77m) with Consulting Services division revenue down 23% to £1.19m (2018: £1.56m), resulting in total revenue for the six months of £2.63m (2018: £2.65m)

·     

Gross Profit increase of 18% to £1.44m (2018: £1.22m)

·     

Adjusted* EBITDA** loss of £0.19m (2018: £0.49m)

·     

59 new Consulting clients secured, an increase of 18% on 2018

·     

Partner Programme generating 17% of new client wins and 4% of Consulting revenue

Post-Period Highlights

·     

Strong growth of Consulting sales since period end

·     

Record revenue in July of £0.62m, up 42% on the same month prior year (2018: £0.44m), with circa £0.1m monthly adjusted EBITDA profit

·     

Record levels of Consulting bookings in Q3 and into Q4

·     

Cash of £0.4m at 6 September and unutilised bank facilities of £0.5m

·     

Trading broadly in line with expectations for the full year, on track to reach EBITDA profitability

 

*Adjusted EBITDA excludes one-off charges and share based charges

**EBITDA is defined as Earnings before Interest, Tax, Depreciation and Amortisation

 

Ian Mann, CEO, commented:

“We are pleased that from the start of H2 the previously reported reduced level of consulting services demand has now been reversed, with consulting growth recovering strongly to match the continued growth in managed services recurring revenue and cyber incident response service.”

 

David Mathewson, Non-Executive Chairman, commented:

“Since period end, the return to profit, positive cash flow, and strong Q3/4 outlook are testament to the continued improvements across the business.  The recent release of the first significant GDPR related cyber security breach fines highlights the continued need for ECSC’s proven expertise and long-established services which is now showing in our current trading.

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