Established in 2000, ECSC is the UK's longest running full service information and cyber security service provider. We are a security partner that can help you in all aspects of your information and cyber security requirements, having helped clients in over 20 countries recover from incidents, develop their security, and gain a range of information and cyber security certifications.

We have a wide range of free publications written by our consultants and technical experts available in our Resource Library.

https://www.ecsc.co.uk/

30th June 2017
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.