TIDMECSC
RNS Number : 7102A
ECSC Group PLC
27 September 2022
27 September 2022
ECSC Group plc
('ECSC' or the 'Company' or the 'Group')
Unaudited interim results for the six months ended 30 June
2022
ECSC Group plc (AIM: ECSC), the provider of cyber security
services, announces its unaudited interim results for the six
months ended 30 June 2022.
Financial Highlights
-- MDR order book up 30% to GBP2.9m (31 December 2021: GBP2.2m)
-- Group revenue of GBP2.77m (H1 2021: GBP3.01m)
-- Assurance division (testing, standards and certification
services) revenue of GBP1.48m (H1 2021: GBP1.49m)
Post-Period Highlights
-- Mid-Sept 2022 Assurance booking level up 30% upon the year-to-date mid-month average
-- Appointment of new CEO
-- Return to a level of MDR new service wins comparable to pre-COVID levels
-- Partnership with Securonix, joining their global Managed Service Provider (MSP) programme
Matthew Briggs, Chief Executive Officer of ECSC, commented:
"H1 was a challenging period, however, we have a firm handle on
what caused the under performance. Some changes have already been
implemented. With several more tactical and strategic initiatives
now identified and being executed, I am expecting to see
improvements in H2 with further improvements during 2023."
Enquiries:
ECSC Group plc
Ian Mann (Executive Chairman)
Matthew Briggs (Chief Executive
Officer) +44 (0) 1274 736 223
Allenby Capital (NOMAD and Broker)
David Hart
Piers Shimwell +44 (0) 203 3285 656
Notes to Editors:
Founded in 2000, ECSC Group plc (AIM: ECSC) is the UK's longest
running full-service cyber security service provider. With an
extensive range of in-house developed proprietary technologies,
including advanced Artificial Intelligence (AI) systems, ECSC
provides expert security breach prevention and advisory support to
organisations across all sectors.
ECSC operates from two Security Operations Centres (SOCs): one
in Yorkshire, UK, and the other in Brisbane, Australia. ECSC offers
flexible 24/7/365 cyber security monitoring, detection, and
response support to its clients, either as a fully managed service
or to enhance an organisation's existing cyber security systems. In
addition, ECSC's Assurance division provides guidance,
certification to industry standards, and extensive testing services
to allow organisations to assess their cyber security
protection.
ECSC is led by a highly experienced senior management team with
over 80 years' combined experience within the company and has
delivered consecutive organic growth for the last 20 years.
The Company's broad client base ranges from e-commerce start-ups
to global blue-chip organisations, including 10% of the FTSE
100.
For more information, please visit the following:
https://investor.ecsc.co.uk/
Chairman's Statement
Following fresh challenges in H1, I am pleased to see how the
group has responded, as reflected in the recent MDR recurring
revenue wins and the current level of Assurance consulting
bookings. Increases of 30% in both MDR order book and current
Assurance booking levels illustrate the up-turn we are seeing on a
range of internal KPIs.
There is now strong evidence that post COVID-19, cyber security
has returned as the number one priority for most organisational
boards. ECSC is the ideal partner to advise and secure these
organisations.
I am delighted with the recent appointment of Matthew Briggs as
our new Chief Executive Officer (CEO). He brings a wealth of senior
commercial experience, placing him in an ideal position to lead us
through the next stage of our development. As a previous client of
ECSC, with a good understanding of our services, he has worked
rapidly to understand the opportunities for the group and brought
with him the highest expectations for the whole team.
We intend to fully report the current, and planned, board
structure in our annual report. However, in line with QCA guidance,
my position as Chairman will be temporary, and reviewed in light of
future non-executive appointments.
On behalf of the Board, I would like to thank all of our
clients, staff, partners and wider stakeholders for their continued
support.
Ian Mann
Executive Chairman
27 September 2022
Chief Executive Officer's Statement
Having commenced the CEO role in August this year, I am still
identifying the mission critical tasks which need to be executed
along with their sequencing. That said, our overall focus on
profitable, sustainable growth remains unaltered and very much
central to our strategic intentions.
It is clear from what has been observed so far, and what I know
of the market, that there are significant opportunities for ECSC.
And whilst at a macro level, there may be some headwinds from
inflation, cost of living, salary costs and interest rate rises,
history tells us that the cyber security industry is resilient
compared to many other sectors.
Some of the areas which will be getting my attention over the
coming weeks and months include re-energising the culture of our
people and ensuring they feel empowered to deliver very clearly
defined targets and objectives. We will be implementing enhanced
KPIs and reporting to ensure full performance transparency exists
across the business. We will also be co-creating our 3 year
business strategy. Essentially, this will produce a roadmap for how
we will stay relevant and appealing so we deliver P&L growth
over the coming years, whilst also ensuring we don't get distracted
from business as usual activities.
Two particular aspects which have struck me since joining are
that firstly, the business has been very inward looking. In turn,
understanding a client's wants and needs and competitor
intelligence is lacking. However, with the combination of Ian's new
role and my connections we can remedy this in relativity short
order. Secondly, ECSC has many significant opportunities to build
different partner relationships, moving away from IT resellers
towards like minded 'trusted advisor' businesses. From a standing
start since I joined, we already have over 25 conversations in play
many of which are with blue chip brand's with extensive client
banks potentially interested in offering our services to their
clients.
Whilst revenue growth during 2022 will not have been at a level
the Board would have wished, one of the overwhelming reasons for me
joining ECSC was the opportunity for significant profitable growth,
and the early signs are indicating that this is within our
gift.
Key Performance Indicators
The following Key Performance Indicators:
Jun Dec Jun
Performance Rationale 2022 2021 2021
Indicator (interim) (full (interim)
year)
Measurement of the success
Revenue Growth* of the organic growth strategy -8% 8% 15%
Visibility of the success of
Managed Detection increasing the percentage of
and Response Recurring revenue from long-term recurring
Revenue Growth* revenues -17% 7% 12%
Visibility of the success of
Managed Detection increasing the percentage of
and Response Recurring revenue from long-term recurring
Revenue Proportion revenues 39% 42% 44%
Managed Detection Combined measurement of new GBP2.9m GBP2.2m GBP2.7m
and Response Order client contracts together with
Book renewals of existing client
contracts
Managed Detection
and Response Gross
Margin Delivery efficiency measurement 46% 61% 64%
Assurance Repeat Quasi-recurring from longer-term
Revenue consulting clients 87% 81% 83%
Assurance Gross
Margin Delivery efficiency measurement 58% 63% 61%
Research and Development Investment in future cyber
(percentage of technologies, service enhancements
Group revenue) and intellectual property 18% 15% 16%
* Percentage change when compared to the prior comparable
period.
Matthew Briggs
Chief Executive Officer
27 September 2022
Financial Review
Principal Activities
The principal activity of the Group during the period continued
to be the provision of professional cyber security services,
including Assurance, Managed Detection and Response Services and
the sale of Vendor Products.
Unaudited Unaudited Audited
6 months 6 months Year ended
30 June 30 June 31 December
2022 2021 2021
GBP'000 GBP'000 GBP'000
Revenue
Assurance 1,476 1,489 3,123
MDR 1,218 1,450 2,886
Vendor Products 45 49 93
Other 31 19 42
2,770 3,007 6,144
Gross Profit
Assurance 860 905 1,965
MDR 561 932 1,757
Vendor Products 7 8 15
Other (33) (29) (63)
1,395 1,816 3,674
Adjusted EBITDA*
Other Income 140 117 282
Sales & Marketing Costs (859) (1,025) (2,018)
Administration Expenses (1,040) (889) (1,773)
(364) 19 165
EBITDA**
Share Based Payments (24) (69) (100)
Exceptional Items (137) (26) (145)
(525) (76) (80)
Depreciation and Amortisation (197) (206) (400)
Adjusted Operating Loss* (561) (187) (235)
Operating Loss (722) (282) (480)
* Adjusted Operating Loss and Adjusted EBITDA excludes one-off
charges and share based charges
** EBITDA is defined as Earnings before Interest, Tax,
Depreciation and Amortisation
Revenue & Organic Growth
Total revenue in the period ended 30 June 2022 was GBP2.77m,
down 8% on the comparable prior period (revenue in the six months
ended 30 June 2021 was GBP3.01m). Within this, Assurance revenue
was down 1% to GBP1.48m (June 2021: GBP1.49m).
Managed Detection and Response division revenue was down by 16%
to GBP1.22m (June 2021: GBP1.45m). This was due to MDR pipeline
issues caused by COVID which are now resolved. Within this
division, Incident Response revenues decreased to GBP0.09m (June
2021: GBP0.14m) during the period.
Vendor Products revenue remained at GBP0.05m, (June 2021:
GBP0.05m), and remains a small part of ECSC's business,
contributing only 2% of revenues.
Margin Generation
Gross Profit in the period was GBP1.40m representing a 50% gross
margin (prior year interim period: GBP1.82m representing a 60%
gross margin).
Assurance margin fell to 58% in the period (prior year interim
period: 61%). This was due to a 5% increase in costs over the prior
period.
Managed Detection and Response margin fell to 46% (prior year
interim period: 64%) due to a 16% decrease in revenue and a 27%
increase in costs due to wage inflation and additional headcount in
the MDR division during the period.
EBITDA & Operating Loss
Adjusted EBITDA for the period, which excludes one-off charges
and share based charges, was a loss of GBP0.36m (June 2021:
Adjusted EBITDA profit of GBP0.02m). EBITDA in the period was a
loss of GBP0.53m (June 2021: EBITDA loss of GBP0.08m).
Adjusted Operating loss in the period was GBP0.56m (June 2021:
Adjusted Operating loss of GBP0.19m). The Operating loss in the
period was GBP0.72m (June 2021: Operating loss of GBP0.28m).
Cash Flow
Cash and cash equivalents decreased by GBP0.87m to GBP0.30m as
at 30 June 2022, primarily due to wage inflation pressures and
reduced revenues compared to the prior year.
During H1 2022, the Group took action to reduce cash burn by
cost control, resulting in costs of over GBP500k per year being
removed from the business.
The Group will continue to prioritise cash management and
closely monitor this to ensure that the Group has adequate
liquidity to meet all of its financial commitments as they arise.
The budget figures are closely monitored against actuals on a
monthly basis. Variances that may arise are discussed at Board
level on a monthly basis. The Directors also consider a sensitivity
analysis based on lower revenue growth and margins achieved and
have formulated appropriate contingency plans which enable the
Group to preserve its financial resources.
Gemma Basharan
Chief Financial Officer
27 September 2022
Consolidated Statement of Comprehensive Income
For the 6 months ended 30 June 2022
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
30 June 30 June 31 December
2022 2021 2021
Note GBP'000 GBP'000 GBP'000
Revenue 5 2,770 3,007 6,144
Cost of Sales (1,375) (1,191) (2,470)
Gross Profit 1,395 1,816 3,674
Other Income 6 140 117 282
Sales & Marketing Costs (859) (1,025) (2,018)
Administration Expenses (1,398) (1,190) (2,418)
Operating Loss before Exceptional
Items (561) (187) (235)
Share Based Payments 24 69 100
Exceptional Items 137 26 145
Operating Loss (722) (282) (480)
Finance Cost (62) (20) (42)
Loss before Taxation (784) (302) (522)
Taxation Credit/ (Charge) 69 (21) (5)
Loss for the Period (715) (323) (527)
Other Comprehensive Income - - -
Total Comprehensive Loss for the
Period (715) (323) (527)
Attributed to Equity Holders
of the Company
Loss Earnings per Share pence pence pence
Basic Loss per Share 7 (7.1) (3.2) (5.3)
Diluted Loss per Share 7 (7.1) (3.2) (5.3)
Consolidated Statement of Financial Position
As at 30 June 2022
Unaudited Unaudited Audited
6 months ended 6 months ended 6 months ended
30 June 2022 30 June 2021 31 December
2021
Note GBP'000 GBP'000 GBP'000
ASSETS
Non-current Assets
Intangible Assets 8 521 489 483
Property, Plant and Equipment 76 103 88
Right of use Assets 571 677 613
Deferred Tax Asset 224 139 147
Total Non-current Assets 1,392 1,408 1,331
Current Assets
Inventory 13 9 9
Trade and Other Receivables 643 719 675
Corporation Tax Recoverable 429 333 289
Cash and Cash Equivalents 9 299 591 1,168
Total Current Assets 1,384 1,652 2,141
TOTAL ASSETS 2,776 3,060 3,472
LIABILITIES
Current Liabilities
Trade and Other Payables (1,523) (1,799) (1,489)
Borrowings (189) - (105)
Lease Liabilities (104) (119) (107)
Total Current Liabilities (1,816) (1,918) (1,701)
Non-current Liabilities
Deferred Tax Liability (132) (132) (124)
Borrowings (770) - (858)
Lease Liabilities (528) (616) (568)
Total Non-current Liabilities (1,430) (748) (1,550)
TOTAL LIABILITIES (3,246) (2,666) (3,251)
NET (LIABILITIES) /ASSETS (470) 394 221
EQUITY
Equity attributable to Owners
of the Parent:
Share Capital 100 100 100
Share Premium Account - 6,098 -
Share Option Reserve 516 461 492
Retained Earnings (1,086) (6,265) (371)
TOTAL EQUITY (470) 394 221
Consolidated Statement of Changes in Equity
For the 6 months ended 30 June 2022
Share Share
Share Premium Option Retained
Capital Account Reserve Earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance as at 31 December 2020 100 6,098 392 (5,942) 648
Loss and Total Comprehensive:
Total comprehensive loss for the
year - - - (527) (527)
Transactions with shareholders
Share Based Payments - - 100 - 100
Reduction of capital (6,098) 6,098 -
Balance as at 31 December 2021 100 - 492 (371) 221
Loss and Total Comprehensive:
Total comprehensive loss for the
year - - - (715) (715)
Transactions with shareholders
Share Based Payments - - 24 - 24
Balance as at 30 June 2022 100 - 516 (1,086) (470)
Consolidated Cash Flow Statement
For the 6 months ended 30 June 2022
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
30 June 30 June 31 December
2022 2021 2021
Note GBP'000 GBP'000 GBP'000
Cash Flow from Operating Activities
Loss before Taxation (784) (302) (522)
Adjustment for:
Amortisation of Intangibles 93 79 166
Depreciation of right-of use asset 66 80 143
Depreciation of Property, Plant
and Equipment 38 47 91
Loss/ (gain) on Disposal of Asset - 4 4
Finance Costs 62 20 42
Share Based Payment 24 69 100
Cash (used in)/generated from
Operating Activities
Before changes in Working Capital (501) (3) 24
Change in Inventory (4) - -
Change in Trade and Other Receivables (108) (25) (146)
Change in Trade and Other Payables 34 (286) (624)
Cash (used in)/generated from
Operating Activities (579) (314) (746)
Corporation Tax received - - 209
Net Cash Flow (used in)/generated
from Cash flow
from investing activities (579) (314) (537)
Acquisition of Property, Plant
and Equipment (27) (5) (34)
Development Costs Capitalised (131) (113) (194)
Net Cash Flow used in Investing
Activities (158) (118) (228)
Cash flow from financing activities
Principal paid on lease liabilities (80) (97) (172)
Interest paid on loans and borrowings (52) (2) (2)
Proceeds from issue of loan - - 985
Net Cash (used in)/generated
from Financing Activities (132) (99) 811
Net increase/ (decrease) in Cash
& Cash Equivalents (869) (531) 46
Cash & Cash Equivalents at beginning
of period 1,168 1,122 1,122
Cash & Cash Equivalents at end
of period 299 591 1,168
Notes to the Financial Statements
For the 6 months ended 30 June 2022
1. Corporate Information
ECSC Group plc is incorporated in England and Wales and quoted
on the London Stock Exchange's Alternative Investment Market (AIM:
ECSC). Further copies of these financial statements will be
available at the Company's registered office: 28 Campus Road,
Listerhills Science Park, Bradford, West Yorkshire, BD7 1HR. These
condensed consolidated interim financial statements as at and for
the six months ended 30 June 2022 were approved by the Board of
Directors on 26 September 2022.
2. General Information
These financial statements may contain certain statements about
the future outlook of ECSC Group plc. Although the Directors
believe their expectations are based on reasonable assumptions, any
statements about future outlook may be influenced by factors that
could cause actual outcomes and results to be materially
different.
3. Basis of Preparation
These interim financial statements for the period ended 30 June
2022 have been prepared in accordance with UK adopted international
accounting standards (collectively 'UKIAS) and as applied in
accordance with the provisions of the Companies Act 2006.
The financial statements for the period ended 30 June 2022 (and
comparative) have been prepared on a consolidated basis. The
consolidated financial statements present the results of the
Company and its subsidiaries ('the Group') as if they formed a
single entity. The financial statements of the Group and Company
are both prepared in accordance with UKIAS. They do not include all
of the information required for a complete set of UK IFRS financial
statements. However, selected explanatory notes are included to
explain events and transactions that are significant to an
understanding of changes in the Group's financial position and
performance since the last annual statements.
Alternative performance measures (APM)
In the reporting of financial information, the Directors have
adopted the APM 'Adjusted EBITDA' (APMs were previously termed
'Non-GAAP measures'), which is not defined or specified under
International Financial Reporting Standards (IFRS).
This measure is not defined by IFRS and therefore may not be
directly comparable with other companies' APMs, including those in
the Group's industry. APMs should be considered in addition to, and
are not intended to be a substitute for, or superior to, IFRS
measurements.
Purpose
The Directors believe that this APM assists in providing
additional useful information on the underlying trends, performance
and position of the Group. This APM is also used to enhance the
comparability of information between reporting periods and business
units, by adjusting for non-recurring or uncontrollable factors
which affect IFRS measures, to aid the user in understanding the
Group's performance.
Consequently, APMs are used by the Directors and management for
performance analysis, planning, reporting and incentive setting
purposes and this remains consistent with the prior year. Adjusted
APMs are used by the Group in order to understand underlying
performance and exclude items which distort compatibility, as well
as being consistent with public broker forecasts and measures (see
note 10).
The financial statements have been presented in thousands of
Pounds Sterling (GBP'000, GBP) as this is the currency of the
primary economic environment that the Company operates in.
4. Accounting Policies
The principal accounting policies applied in the preparation of
the financial statements are set out below. These policies have
been consistently applied to all periods presented, unless
otherwise stated.
4.1 Basis of Accounting
The financial statements have been prepared on the historical
cost basis except as stated.
4.2 Going Concern
The Directors have reviewed whether the Group has adequate
resources to continue in operational existence for the foreseeable
future. In conducting this review, the Directors have considered a
range of factors, including the market prospects for cyber security
services, client relationships and dependency, supplier
relationships and dependency, actual or potential litigation, staff
retention and reliance, relationships with HMRC and regulators,
financing arrangements, historic trading and cash flow performance,
current trading and cash flow performance, and future trading and
cash flow expectations.
The budget figures continue to be closely monitored against
actuals on a monthly basis. Variances that may arise are discussed
a Board level on a monthly basis during a review of the monthly
numbers. In the event that this revenue and cost performance is not
achieved, the Directors have also considered a sensitivity analysis
based on lower revenue growth and have formulated contingency plans
for this scenario, which enable the Group to preserve its financial
resources.
During H1 the Group took action to reduce cash burn by cost
control, costs of over GBP500k were removed from the business.
As at 30 June 2022, the Group had cash and cash equivalents of
GBP0.30m (2021: GBP0.59m) and achieved an Adjusted EBITDA loss of
GBP0.36m (2021: profit of GBP0.02m) and an operating loss of
GBP0.72m (2021: GBP0.28m).
Based on this review, the Directors have concluded that the
Group has adequate resources to meet its liabilities as they fall
due and continue in operational existence for the foreseeable
future, which is considered to be at least the next 12 months.
Consequently, the Directors have adopted the going concern basis in
preparing the interim financial statements.
4.3 Revenue Recognition
The core principle is that revenue should only be recognised as
the client receives the benefit of the goods or services provided
under a commercial contract, in an amount that reflects the
consideration to which the provider expects to be entitled for the
transfer of the goods or services.
Performance obligations and timing of revenue recognition
Revenue comprises the sales value of goods and services supplied
during the year, exclusive of Value Added Tax and trade discounts.
Revenue from the provision of Consulting services is recognised as
services are rendered, based on the contracted daily billing rate
and the number of days delivered during the period.
Revenue from Pre-paid contracts are deferred in the balance
sheet and recognised on utilisation of service by the client.
Pre-paid revenue is included within Assurance in note 5. Revenue
from MDR contracts includes:
Hardware - hardware revenue is recognised on delivery and is
included within other revenue as set out in note 5. This is when
control of hardware passes to the customer.
Device build - Device build revenue is deferred and recognised
on a straight line basis over the term of the contract.
Licensing - deferred and recognised on a straight line basis
over the invoice period, due to the performance obligation not
being considered distinct from management and monitoring
performance obligation.
Management and monitoring - deferred and recognised on a
straight line basis over the invoice period.
Performance obligations and timing of revenue recognition
Management and monitoring - deferred and recognised on a
straight line basis over the invoice period.
Revenue from the sale of products (vendor) is recognised when
control passes to the customer, which is considered to occur when
the software or hardware product has been delivered to the
client.
Determining the transaction price
The Group's revenue is derived from fixed price contracts and
therefore the amount of revenues to be earned from each contract is
determined by reference to those fixed prices.
Costs of obtaining long-term contracts and costs of fulfilling
contracts
Commissions paid to sales staff for work in obtaining Managed
Service contracts are prepaid and amortised over the terms of the
contract on a straight line basis.
Commissions paid to sales staff for work in obtaining the
Prepaid Consultancy contracts are recognised in the month of
invoice.
These costs are recognised in the Consolidated Statement of
Comprehensive Income within Sales & Marketing costs.
Contract Balances
Contract Contract Contract Contract
Assets Assets Liabilities Liabilities
30 June 31 December 30 June 31 December
2022 2021 2022 2021
GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 20 34 (683) (878)
Commission expensed during
the period (20) (91) - -
Commissions paid in advanced
of contract completion - 77 - -
Recognised as revenue during
the period - - 1,380 3,286
Invoiced in advanced of performance
during period - - (1,376) (3,091)
- 20 (679) (683)
4.4 Finance Income
Finance income is accrued on an annual basis, by reference to
the principal outstanding at the applicable effective credit
interest rate.
4.5 Government Grant Income
A government grant is recognised only when there is reasonable
assurance that (a) the entity will comply with any conditions
attached to the grant; and (b) the grant will be received.
The grant is recognised as income over the period necessary to
match them with the related costs, for which they are intended to
compensate, on a systematic basis.
Government Grant Income is recognised in the Statement of
Comprehensive Income over the period in which the Company
recognises expenses for the related costs for which the grants are
intended to compensate. Grants relating to income are deducted from
the related expense.
Government tax credits available on eligible Research and
Development expenditure ('R&D Tax Credits') and not reclaimable
through other means are recognised as Other Income.
5. Revenue and Segment Information
The Group's principal revenue is derived from the provision of
cyber security professional services.
During this period, the Directors received information on
financial performance on a divisional basis. The Directors consider
that there are three reportable operating segments: Assurance
(including Remote Support services), Managed Detection and
Response, and Vendor Products. There were a small number of other
transactions recorded during each period which are not considered
to be part of either of the three reportable operating segments.
These are presented below within the 'Other' caption and are not
significant.
The Directors do not receive any information on the financial
position of each segment, including information on assets and
liabilities. Accordingly, such information has not been
presented.
The Group is not reliant on any single client, with no single
client accounting for 10% or more of revenue. All revenue
recognised is derived from external clients.
The Group's revenue and gross profit by operating segment for
the period ended 30 June 2021 and comparative periods is as
follows:
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
30 June 30 June 31 December
2022 2021 2021
GBP'000 GBP'000 GBP'000
Revenue
Assurance 1,476 1,489 3,123
MDR 1,218 1,450 2,886
Vendor Products 45 49 93
Other 31 19 42
Total Revenue 2,770 3,007 6,144
Gross Profit
Assurance 860 905 1,965
MDR 561 932 1,757
Vendor Products 7 8 15
Other (33) (29) (63)
Gross Profit 1,395 1,816 3,674
Operating Loss (722) (282) (480)
Finance Cost (62) (20) (42)
Loss before Taxation (784) (302) (522)
6. Other Income
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
30 June 30 June 31 December
2022 2021 2021
GBP'000 GBP'000 GBP'000
R&D Tax Credits 140 117 282
Total 140 117 282
7. Earnings per Share
Basic Earnings per Share is calculated by dividing the Profit
for the period Attributable to Equity Holders of the Company by the
weighted average number of Ordinary Shares outstanding during the
period ('Basic Number of Ordinary Shares').
Diluted Earnings per Share is calculated by dividing the Profit
for the period attributable to Equity Holders of the Company by the
weighted average number of Ordinary Shares outstanding during the
period plus the weighted average number of Ordinary Shares that
would be issued on conversion of all the potential dilutive
Ordinary Shares ('Diluted Number of Ordinary Shares'), subject to
the effect of anti-dilutive potential shares being ignored in
accordance with IAS 33.
Adjusted Earnings per Share is calculated by dividing Adjusted
Profit by Diluted Number of Ordinary Shares.
The calculation of Basic, Diluted and Adjusted Earnings per
Share is as follows:
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
30 June 30 June 31 December
2022 2021 2021
GBP'000 GBP'000 GBP'000
Net Profit attributable to Equity
Holders of the Company (715) (323) (527)
Add back: Exceptional Costs 137 26 145
Add back: Share Based Payments 24 69 100
Adjusted Profit (554) (228) (282)
Number of Ordinary Shares ('000)
Initial Weighted Average 10,007 10,007 10,007
Basic Number of Ordinary Shares 10,007 10,007 10,007
Weighted Average Dilutive Shares
in Period 1,160 1,107 1,160
Diluted Number of Ordinary Shares 11,167 11,114 11,167
Earnings per Share (pence):
Basic Earnings per Share (7.1) (3.2) (5.3)
Diluted Earnings per Share** (7.1) (3.2) (5.3)
Adjusted Earnings per Share (5.5) (2.3) (2.8)
** In accordance with IAS 33, the effect of anti-dilutive
potential shares has been ignored
8. Intangible Assets
GROUP & COMPANY
Development Costs
Costs GBP'000
As at 1 January 2021 1,279
Additions 194
As at 31 December
2021 1,473
As at 01 January
2022 1,473
Additions (6 months) 131
As at 30 June 2022 1,604
Amortisation
As at 1 January 2021 824
Charges for the year 166
As at 31 December
2021 990
As at 01 January
2022 990
Additions (6 months) 93
As at 30 June 2022 1,083
Net Book Value
As at 31 December
2021 483
As at 30 June 2022 521
9. Cash & Cash Equivalents
Unaudited Unaudited Audited
GROUP GROUP GROUP
As at As at Year ended
30 June 30 June 31 December
2022 2021 2021
GBP'000 GBP'000 GBP'000
Cash & Cash Equivalents 299 591 1,168
10. Adjusted (Loss) before Taxation and Adjusted EBITDA
Adjusted (Loss)/Profit before Taxation
Unaudited Unaudited Audited
6 months 6 months Year ended
30 June 30 June 31 December
2022 2021 2021
GBP'000 GBP'000 GBP'000
Loss before Taxation (784) (302) (522)
Share Based Payments 24 69 100
Exceptional Items 137 26 145
Adjusted (Loss) before
Taxation (623) (207) (277)
Adjusted EBITDA:
Unaudited Unaudited Audited
6 months 6 months Year ended
30 June 30 June 31 December
2022 2021 2021
GBP'000 GBP'000 GBP'000
Operating Loss (722) (282) (480)
Depreciation and Amortisation 197 206 400
EBITDA** (525) (76) (80)
Share Based Payments 24 69 100
Exceptional Items 137 26 145
Adjusted EBITDA* (364) 19 165
Unaudited Unaudited Audited
6 months 6 months Year ended
30 June 30 June 31 December
2022 2021 2021
GBP'000 GBP'000 GBP'000
Operating Loss (722) (282) (480)
Share Based Payments 24 69 100
Exceptional Items 137 26 145
Adjusted Operating Loss* (561) (187) (235)
* Adjusted Operating Loss and EBITDA excludes one-off charges
and share based charges.
* * EBITDA is defined as Earnings before Interest, Tax,
Depreciation and Amortisation.
11. Subsidiary Undertakings
ECSC Group plc currently has the following wholly-owned
subsidiaries, which are incorporated and registered in England and
Wales:
Name of Subsidiary Registered Office Date of Incorporation Principal Activity
ECSC Services 28 Campus Road 18 April 2017 Dormant
Limited Listerhills Science
Park
Bradford
BD7 1HR
ECSC Labs Limited 28 Campus Road 18 April 2017 Dormant
Listerhills Science
Park
Bradford
BD7 1HR
ECSC Australia 28 Campus Road 29 September 2016 Intermediary holding
Limited Listerhills Science company
Park
Bradford
BD7 1HR
ECSC Australia Limited currently has the following wholly-owned
subsidiary, which is incorporated and registered in Australia:
Name of Subsidiary Registered Office Date of Incorporation Principal Activity
ECSC Australia Governor Phillip 20 March 2017 Provision of professional
Pty Limited Tower Level 36 cyber security
1 Farrer Place services
Sydney
NSW 2000
The share capital of each Group entity is as follows:
Entity Ordinary Shares Nominal Value Investment at
in Issue Cost
ECSC Services 1 share GBP1 GBP1
Limited
ECSC Labs Limited 1 share GBP1 GBP1
ECSC Australia 1 share GBP1 GBP1
Limited
ECSC Australia 100 shares AUD 1 AUD 100
Pty Limited
Total GBP60
* AUD = Australian dollars
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END
IR EAPNKAEPAEFA
(END) Dow Jones Newswires
September 27, 2022 02:10 ET (06:10 GMT)
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