Cyber security firm ECSC has posted a huge increase in revenues as it cashes in on new regulation and growing concerns about cyber attacks.
Revenue surged 35 per cent to £5.4m.
Gross profit increased 67 per cent to £2.7m.
Adjusted earnings before interest, tax, depreciation and amortisation loss narrowed from £2.9m to £0.6m.
Why it’s interesting
ECSC has reported strong organic growth in its second full year of trading since its initial public offering (IPO) in 2016.
The firm bagged 95 new clients over the year as it benefited from the growing number of high-profile cyber attacks and the introduction of new GDPR legislation.
ECSC said that while the Information Commissioner's Office is yet to hand down fines relating to the regulation, businesses are now more aware of the risks of cyber breaches and the importance of reporting incidents.
Chief executive Ian Mann told City A.M. “a lot of people have skimped on security” and said many companies did not even know what cyber security was when the firm launched 19 years ago.
But he said there is a growing recognition in boardrooms about the importance of cyber security and awareness of the issues improves every year.
ECSC said its strong results were also driven by successful up-selling and extensive work to control costs. The company delivered a positive forecast, saying it is aiming to broaden its client base and improve results.
Shares in ECSC were up more than two per cent this morning.
What ECSC said
Chief executive Ian Mann said: “We are delighted to report such strong organic growth for the full year, well ahead of the previous year, with continued emphasis on building our managed services recurring revenue supported by our consultancy services.
“The team continues to acquire new clients, deliver quality service, develop our technologies and build a solid base for ongoing growth. We believe we are well positioned to build on the strong organic growth achieved in 2018 and we look forward to the future with confidence.”