ECSC Group PLC Pre-Close Trading Update (6709J)
June 30 2017 - 1:01AM
UK Regulatory
TIDMECSC
RNS Number : 6709J
ECSC Group PLC
30 June 2017
30 June 2017
ECSC Group plc
("ECSC" or the "Company")
Pre-Close Trading Update
ECSC Group plc (AIM: ECSC), a provider of cyber security
services, provides the following update on trading for the
financial year ending 31 December 2017 ("FY17").
Market Background
The market background for cyber security remains positive.
Recent high profile incidents have helped cyber security remain a
priority for corporate boards.
Investment in Operational Infrastructure
The Company has embarked upon a strategy of organic growth,
based upon investment in its operational infrastructure, to build
ECSC into a leading cyber security business. Good progress has been
made so far this year in scaling the operations, with the growth in
headcount and new operating locations all developing in line with
management expectations.
Sales Pipeline
The newly expanded sales team has completed a phase of induction
and training during FY17 and has been permitted a short period of
time to establish and build the sales pipeline of new business. The
sales team is currently on track to meet internal targets set for
pipeline generation.
Whilst the Board is pleased with new sales pipeline generation,
the conversion of sales pipeline into reported revenue is taking
longer than anticipated. This has resulted in Consulting revenues
falling six weeks behind the originally anticipated growth curve
and Managed Services wins falling behind slightly longer.
Trading Update - Full Year FY17
Whilst the Board remains confident of the long-term success of
the business, the delays it sees in sales conversion will lead to a
lower level of revenue in FY17 than originally expected. Given that
the investment in the cost base has been completed as planned, this
lower level of revenue will result in an increase in the expected
EBITDA loss for full year FY17. The Board is focussing on
monitoring the ramp-up of reported revenue very closely and
managing the cost base accordingly.
Conclusion
The Board continues to believe that the organic growth strategy
of the Company is appropriate for the positive market background
and that the long-term outlook for ECSC is encouraging.
Ian Mann (Chief Executive Officer) commented: "The scale-up of
the operations has progressed well so far. Whilst the new sales
team is bedding-in, we are experiencing a delay in revenue growth
that will directly impact FY17 results. However, we are seeing
encouraging sales pipeline growth and the management team remains
focussed on harnessing the market backdrop for the longer-term
benefit of the Company."
The Board looks forward to providing a further update on
progress in due course.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Enquiries:
ECSC Group plc
Nigel Payne (Non-Executive
Chairman)
Ian Mann (Chief Executive
Officer)
Stephen Hammell (Chief
Financial Officer)
www.ecsc.co.uk +44 (0) 1274 736 223
Stockdale Securities
(NOMAD and Broker) +44 (0) 20 7601 6100
Robert Finlay
Hanan Lee
Yellow Jersey PR (PR
& IR)
Felicity Winkles
Alistair de Kare-Silver +44 (0) 7825 916 715
Notes to Editors
ECSC is a proven provider of cyber security services with a
blue-chip client base that offers a comprehensive range of
solutions.
The Company has over 16 years' experience in the design,
implementation and management of cyber security solutions. ECSC's
consultancy-led approach, and its combination of custom
methodologies and in-house proprietary technologies, enables the
Company to provide individually tailored services to its clients.
The Company has significant intellectual property, including
bespoke products delivering remotely managed cyber security
services and custom-made internal support and delivery systems.
The Company floated on AIM in December 2016 to accelerate its
growth strategy and to take advantage of the importance attached to
cyber security by company boards as a result of the recent
proliferation of high profile cyber security breaches.
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTPGUPUQUPMPWB
(END) Dow Jones Newswires
June 30, 2017 02:01 ET (06:01 GMT)
Ecsc (LSE:ECSC)
Historical Stock Chart
From Apr 2024 to May 2024
Ecsc (LSE:ECSC)
Historical Stock Chart
From May 2023 to May 2024