ECSC.L Share News (ECSC)

(Alliance News) - Cybersecurity services provider ECSC Group PLC on Tuesday reported an improvement in results for 2019, driven by a focus on building recurring revenue streams and "tight" cash management.

Revenue was GBP5.9 million, rising 9.3% from GBP5.4 million in 2018. Pretax loss narrowed to GBP750,000 from GBP1.3 million. No dividend was declared.

During the period, revenue from the Managed Services division grew by 48% to GBP2.6 million from GBP1.8 million the year prior. The Consulting division saw growth in the second half of the year, with 73% of revenue being repeat purchases from existing clients, however annual revenue in the division was lower at GBP2.9 million from GBP3.1 million. Vendor product sales fell by 29% to GBP162,000.

Looking ahead, ECSC said that, although the Covid-19 outbreak has introduced uncertainty, it remains confident of future growth and believes it currently has adequate cash to continue operations for a 12-month period.

"Whilst the current Covid-19 situation has the potential to impact the global economy, we predict that as organisations move rapidly to remote and cloud working, there will be an increase in cyber security incidents, and therefore potential increases in demand for some ECSC services," said Chief Executive Ian Mann.

As at the end of 2019, ECSC had cash of GBP350,000.

The stock was trading 16% higher at 90.00 pence each on Wednesday morning in London.

By Ife Taiwo; ifetaiwo@alliancenews.com

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