ECSC shares rise as data breach fines get cyber consulting back on track
Shares in ECSC rose more than three per cent this morning after the cybersecurity firm reported renewed demand for its consulting services division.
Read more: ECSC revenues jump as it grows client base amid cybersecurity concerns
The figures
ECSC’s total revenue slipped marginally from £2.64m to £2.63m in the six months to the end of June.
Gross profit increased 18 per cent to £1.4m.
The firm posted an adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) loss of £0.2m, compared to £0.5m last year.
Why it’s interesting
ECSC is one of a number of cybersecurity firms looking to tap into growing awareness of cyber security.
The half-year figures reveal differing fortunes across the firm’s managed services division, which provides incident response, and its consulting services.
ECSC posted a huge 63 per cent revenue increase to £1.2m over the period, while consulting revenue dropped 23 per cent to £1.2m. Overall, revenue was flat compared to last year.
The Bradford-based cyber firm said the figures marked a strong recovery after it suffered faltering demand for its consulting services, which it blamed on economic uncertainty and businesses choosing to delay projects due to Brexit concerns.
ECSC said it had bagged record levels of consulting bookings in the third quarter and into the fourth quarter.
The cyber specialists have been boosted by the first raft of hefty fines handed down by the Information Commissioner’s Office (ICO) under new data regulation.
In July the ICO slapped British Airways and Marriott International with fines of £183m and £99m respectively for their failure to handle data breaches.
Chief executive Ian Mann told City PM there had been a gradual uptake in interest from businesses amid growing awareness of cybersecurity issues.
“Every year awareness at a board level increases,” he said, adding that recent fines had “made the market better.”
ECSC said it expects full-year revenue to be broadly in line with market expectations, and aimed to continue its track record of 20 per cent growth year-on-year.
Read more: Internal auditors name cybersecurity as the top risk faced by their business
What ECSC said
Chief executive Ian Mann said: “We are pleased that from the start of the second half 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.”
Main image credit: Getty