ECSC (AIM: ECSC), the provider of cyber security services, is pleased to announce a trading update for the 2019 financial year, with the Company’s results being in line with market expectations, delivering:
· Revenue growth of 10% to circa £5.9m*
· Managed services recurring revenue growth in excess of 25%
· Cash generative in the second half, with an adjusted EBITDA** profit in H2 of circa £0.2m*
· Year-end cash balance of £0.35m*, with an unutilised bank facility of £0.5m, and debtors of £1m*
· 2019 new client acquisitions up 24% to 118, with 17% generated from the partner programme
· R&D investment circa 13% of revenue
* Unaudited figures
** Adjusted EBITDA is defined as Earnings before Interest, Tax, Depreciation and Amortisation and excludes one-off charges and share based charges
Ian Mann, Chief Executive Officer of ECSC, commented:
“We are very pleased that the record trading in H2 resulted in double digit organic annual revenue growth, and a return to adjusted EBITDA profitability. Growth in recurring revenue of over 25% shows the effectiveness of our strategy of winning consulting clients and converting them into long-term managed services clients. The acceleration of new client acquisitions in 2019 should help to build a solid foundation for future growth.”
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