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ECSC swings to underlying profit despite slight dip in revenues
5th Aug 2020 10:33
(Sharecast News) - Cybersecurity group ECSC swung to a profit in the six months ended 30 June despite posting a slight dip in group revenues.
ECSC said group revenues for the half came to roughly £2.61m, down from the £2.63m recorded a year earlier, but stated it had recorded an EBITDA profit for the period - a marked improvement from a £184,000 loss in the prior year.
Managed services revenues were up 25% at £1.17m, with a managed services order book of £2.9m, while consulting revenues were 4% higher year-on-year at £1.24m.
The AIM-listed group said it had achieved its Covid-19 target of operating on a break-even adjusted earnings basis in May, exceeded in June, and further improved upon in July.
Chief executive Ian Mann said: "I am pleased to report improved financial performance in a period that includes significant Covid-19 UK economic impact. Continued growth in managed services recurring revenue is a result of previously reported new client wins in addition to the successful contract renewals of all significant existing managed services.
"I am also delighted that the group remained profitable in the period on an adjusted EBITDA basis. The steps taken in recent months by the board and management should position the group well for the remainder of the year."
As of 1030 BST, ECSC shares were up 7.20% at 67.0p.
ECSC said group revenues for the half came to roughly £2.61m, down from the £2.63m recorded a year earlier, but stated it had recorded an EBITDA profit for the period - a marked improvement from a £184,000 loss in the prior year.
Managed services revenues were up 25% at £1.17m, with a managed services order book of £2.9m, while consulting revenues were 4% higher year-on-year at £1.24m.
The AIM-listed group said it had achieved its Covid-19 target of operating on a break-even adjusted earnings basis in May, exceeded in June, and further improved upon in July.
Chief executive Ian Mann said: "I am pleased to report improved financial performance in a period that includes significant Covid-19 UK economic impact. Continued growth in managed services recurring revenue is a result of previously reported new client wins in addition to the successful contract renewals of all significant existing managed services.
"I am also delighted that the group remained profitable in the period on an adjusted EBITDA basis. The steps taken in recent months by the board and management should position the group well for the remainder of the year."
As of 1030 BST, ECSC shares were up 7.20% at 67.0p.