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 it’s doing
In its results for the six months ended June 30, 2020, the firm reported adjusted underlying earnings (EBITDA) of £52,000, swinging from a £184,000 loss in the prior year, while revenues remained relatively steady at £2.61mln compared to £2.63mln in 2019.
The EBITDA performance confirms a trading update issued by the company in early August, while the group also said MDR recurring revenues had jumped 25% to £1.17mln while the division’s order book expanded to £2.9mln from £2.7mln.
ECSC reported that revenues in its Assurance division, which covers testing, standards and certification services, had risen by 4% to 1.24mln in the first half.
Post-period, the group reported a “strong recovery” in revenues for Assurance, which it said were 33% higher than the second quarter average in July, while total bookings for the division in mid-September were 75% higher than the first-half average. ECSC also said adjusted EBITDA profitability has continued.
Chief executive Ian Mann also highlighted uptake in the company’s partnership programme, with 120 registered partners now generating over 160 sales opportunities by the end of the first half, which had made a “material contribution to revenue”.
What the boss says – Ian Mann
“We are delighted to report a return to Adjusted EBITDA profit with record levels of recurring revenues and orders within our Managed Detection and Response division, partly driven by an increase in cybersecurity incidents as organisations have accelerated the existing trend towards remote and cloud working during the [coronavirus] pandemic.”
“We have so far exceeded our stated objective of maintaining a break-even Adjusted EBITDA position throughout the [coronavirus] crisis. We remain focused on our strategy of growing our Managed Detection and Response division in order to build our recurring revenue streams and target this fast-growing sector of the market … In summary, ECSC is well-positioned in the growing global cybersecurity marketplace, and we look forward with confidence to delivering improved operating results and shareholder value.”
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