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ECSC Group PLC (ECSC)

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Tuesday 11 September, 2018

ECSC Group PLC

Interim Results

RNS Number : 3363A
ECSC Group PLC
11 September 2018
 

                                       11 September 2018

 

ECSC Group plc

("ECSC" or the "Company" or the "Group")

Unaudited results for the six months ended 30 June 2018

Strong cyber security organic growth delivered,

including in key area of managed services
 

 

ECSC Group plc (AIM: ECSC), the provider of cyber security services, announces its interim results for the 6 months ended 30 June 2018.

Highlights

·      Organic revenue growth of 43% (2018: £2.65m, 2017: £1.85m)

·      Managed Services recurring revenue growth of 52% (2018: £0.77m, 2017: £0.51m)

·      Consulting Services growth of 36% (2018: £1.56m, 2017: £1.14m)

·      EBITDA loss of £0.5m in period (2017: loss of £1.5m)

·      Cash of £1m

 

Operational Highlights

·      New managed service wins valued at £0.9m

·      Addition of 50 new consulting clients

·      Introduction of new Artificial Intelligence (AI) technology into the global Security Operations Centres.

 

 

Ian Mann, CEO of ECSC, commented:
"We are pleased to report our revenue growth, with particular emphasis on our Managed Services recurring revenue.  New client acquisitions, and conversion to recurring revenues is a powerful combination to deliver growth and exploit the post-GDPR regulatory environment."

Enquiries:

ECSC Group plc

David Mathewson (Non-Executive Chairman and CFO)

Ian Mann (Chief Executive Officer)

+44 (0) 1274 736 223

 

 

Allenby Capital (NOMAD and Broker)

+44 (0) 20 3328 5656

David Hart

Nicholas Chambers

 

 

Alma PR (Financial PR)

Joshua Royston

Rebecca Sanders-Hewett

 

+44 (0) 20 8004 4217

 

 

 

For more information please visit the following: www.ecsc.co.uk   
 

Chairman's Statement

I am pleased to present the interim results to our shareholders for the first six months of 2018. These results show significant progress within the company, particularly the strong revenue growth, tighter cost controls and cash management, and a more focussed and motivated management team.

The organic revenue growth reported is a result of the significant investment in the development of new operational facilities and services, recruitment of key personnel, and the introduction of a new management structure.

We are also delighted to have welcomed Elizabeth Gooch MBE to our board, bringing a wealth of relevant experience in high-growth IT service businesses.

The company has critically examined all costs with a view to improving efficiency whilst maintaining client service, quality of delivery and growth capability.  This has resulted in a move towards break even post period end.

ECSC's vision and strategy is to build significantly upon the organic growth to date and expand its blue-chip client base with particular emphasis on Managed Services recurring revenue.

The Board believes that there is an opportunity to increase the scale of ECSC's business to meet current demand and expected market growth.  This is particularly the case following the introduction of the General Data Protection Regulation (GDPR) across Europe, and within the UK as part of the new Data Protection Act 2018 in May this year.  This legislation makes the reporting of a breach of personal data mandatory, with potential fines of up to 2% of global turnover or Euro10m (whichever is the greater) for cases of serious non-compliance.

The market for cyber security services remains largely fragmented.  Many of our competitors still only provide a small portion of the services required to meet clients' needs whilst, in contrast, ECSC provides a full suite of cyber and information security solutions, offering a compelling client partnership proposition.  The introduction of our new Artificial Intelligence (AI) technology within our global Security Operations Centres is another significant development in our capability.

With continued strong organic revenue growth, ECSC is well positioned to increase its share of the UK cyber security services market and leverage the capacity within the delivery team.

 

 

David Mathewson

Chairman

11 September 2018

 

 

 

Chief Executive's Review

I am pleased to report strong organic growth during the half year.  The post-IPO operational investments we have made are enabling ECSC to increase its market share in the growing cyber security market.

Significant client wins include over 50 new consulting clients in the period, and new three-year managed services contract wins contributing over £900k to our long-term order book. 

We continue to expand the range of services delivered to each client, with the strategic aim of delivering
long-term recurring managed service revenues and leveraging our delivery capacity.  Consulting services continue to be an effective way of developing a trusted relationship with clients and help us expand our services to each client.

Our continued investment in our own technology IP provides key strategic advantages, as reflected this year, with the introduction of our Kepler Artificial Intelligence (AI) technology across a range of managed services.  When combined with our staff expertise within our global Managed Services Security Operations Centres,
AI will bring significant operational efficiencies and facilitate the processing of vast quantities of cyber security related data.  This facilitates faster, and more effective incident response, essential to meet the requirements of GDPR legislation.

Recruitment and retention of the best talent in the industry remains a key priority.  Our reputation for quality delivery, and a focus on individual development, continues to attract and keep the right people. 

We continue to see many growth opportunities, whilst leveraging delivery capacity, particularly within managed services recurring revenue.

 

Key Performance Indicators (KPI)

The board has agreed, and introduced, the following KPIs to monitor performance moving forwards:

·      Total revenue growth - 43%

·      Managed Service recurring revenue growth - 52%

·      Managed Service recurring revenue - 29% of total revenue

·      Managed Service order book - £2.4m

·      Consulting repeat revenue - 78% of consulting sales

·      Deferred income - £0.9m

·      Consulting gross margin - 57%

·      Managed service gross margin - 41%

 

Ian Mann

Chief Executive Officer

11 September 2018

 

 

 

Financial Review

 

Revenue Growth

Total revenue growth in the interim period was 43% (2018: £2.65m, 2017: £1.85m) compared to the prior year with gross profit growth of 34%. 

Reported on an IFRS15 basis, Managed Services recurring revenue has grown by 52% (2018: £0.77m, 2017: £0.51m) with Consulting Services growing by 36% (2018: £1.56m, 2017: £1.14m).

Vendor Products revenue in the period grew by over 200% (2018: £0.16m, 2017: £0.05m), but remains small contributing only 6% of revenues.

Margin Generation

Consulting gross margins have remained stable in the period at 57% (prior year interim period 56%). The underlying pricing of Consulting days has remained constant in the interim period reported.

Managed Services gross margins have also fallen in the period to 41% (prior year interim period 45%), but this is a reflection on our investment in our 24/7/365 service offering.

As a result, total gross margin has fallen slightly to 46% (prior year interim period 48%) reflecting the
scale-up of Managed Services operational capacity.

EBITDA

The planned cost reduction programme was completed on-time, delivering the intended savings whilst maintaining appropriate growth capacity.

EBITDA loss, before exceptional items of £0.10m, in the interim period was £0.54m (EBITDA loss of £1.55m in the 6 months to June 2017).   Importantly, before exceptionals, the EBITDA loss in the second quarter was materially below that in the first quarter.

Cash Flow

During the interim period, the cash balance has fallen due to the EBITDA loss, and one-off payments relating to the management restructuring during the period.

The cash balance at 30 June 2018 was £1m.  The Board considers the cash balance to be sufficient to fund the ongoing growth and development of the Company.

Dividend

The Board has not declared a dividend for the interim period.

 

 

David Mathewson

Chief Financial Officer

11 September 2018

 

 

 

 

 

ECSC Group plc

Statement of Comprehensive Income

For the 6 months ended 30 June 2018

 

 

 

Note

 

6 months ended

30 June

2018

£'000

*

6 months ended

30 June

2017

£'000

 

 

 

 

 

Revenue

6

 

2,649

1,853

Cost of Sales

 

 

(1,429)

(960)

Gross Profit

6

 

1,220

893

Other Income

7

 

79

45

Sales & Marketing Costs

 

 

(909)

(1,310)

Administrative Expenses

 

 

(1,207)

(1,285)

Operating (Loss)/Profit before Exceptional Items

 

 

(718)

(1,657)

Exceptional Items

17

 

(99)

-

Operating Loss

8

 

(817)

(1,657)

Finance Income

 

 

-

-

(Loss)/Profit before Taxation

9

 

(817)

(1,657)

Taxation Credit

10

 

22

44

(Loss)/Profit for the Period

 

 

(795)

(1,613)

 

 

 

 

 

Other Comprehensive Income

 

 

-

-

 

 

 

 

 

Total Comprehensive Income for the Period

 

 

(795)

(1,613)

 

 

 

 

 

Attributable to Equity Holders of the Company

 

 

(795)

(1,613)

 

 

 

 

 

(Loss)/Earnings per Share (pence)

11

 

 

 

Basic (loss)/earnings per share

 

 

(8.7)

(17.9)

Diluted (loss)/earnings per share

 

 

(8.4)

(17.6)

 

 

      * The Comparative figures have been restated in accordance with Note 3.

 

 

 

 

ECSC Group plc

Consolidated Statement of Financial Position

As at 30 June 2018

 

 

Note

 

 

 As at

30 June

2018

£'000

 

*

As at

30 June

2017

£'000

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

Non-current Assets

 

 

 

 

Intangible Assets

12

 

407

388

Property, Plant and Equipment

 

 

469

500

Total non-current assets

 

 

876

888

 

 

 

 

 

Current Assets

 

 

 

 

Inventory

 

 

28

69

Trade and Other Receivables

13

 

1,144

994

Corporation Tax Recoverable

7

 

201

225

Cash and Cash Equivalents

14

 

1,000

3,128

Total Current Assets

 

 

2,373

4,416

 

 

 

 

 

TOTAL ASSETS

 

 

3,249

5,304

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

Trade and Other Payables

15

 

(1,800)

(1,216)

Finance Leases

16

 

(20)

-

Total Current Liabilities

 

 

(1,820)

(1,216)

 

 

 

 

 

Non-current Liabilities

 

 

 

 

Deferred Tax

10

 

7

-

Finance Leases

16

 

(31)

-

Total Non-current Liabilities

 

 

(24)

-

 

 

 

 

 

TOTAL LIABILITIES

 

 

(1,844)

(1,216)

 

 

 

 

 

NET ASSETS

 

 

1,405

4,088

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

 

 

Equity attributable to owners

of the Parent:

 

 

 

 

Share Capital

 

 

91

91

Share Premium Account

 

 

5,661

5,661

Share Option Reserve

 

 

147

-

Retained Earnings

 

 

(4,494)

(1,664)

 

 

 

 

 

TOTAL EQUITY

 

 

1,405

4,088

 

 

     

* The Comparative figures have been restated in accordance with Note 3.

 

 

 

 

ECSC Group plc

Company Statement of Financial Position

As at 30 June 2018

 

 

Note

 

 

 As at

30 June

2018

£'000

 

*

 As at

30 June

2017

£'000

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

Non-current Assets

 

 

 

 

Intangible Assets

12

 

407

388

Property, Plant and Equipment

 

 

430

500

Total non-current assets

 

 

837

888

 

 

 

 

 

Current Assets

 

 

 

 

Inventory

 

 

28

69

Trade and Other Receivables

13

 

1,213

994

Corporation Tax Recoverable

7

 

201

225

Cash and Cash Equivalents

14

 

999

3,128

Total Current Assets

 

 

2,441

4,416

 

 

 

 

 

TOTAL ASSETS

 

 

3,278

5,304

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

Trade and Other Payables

15

 

(1,831)

(1,216)

Finance Leases

16

 

(20)

-

Total Current Liabilities

 

 

(1,851)

(1,216)

 

 

 

 

 

Non-current Liabilities

 

 

 

 

Deferred Tax

10

 

7

-

Finance Leases

16

 

(31)

-

Total Non-current Liabilities

 

 

(24)

-

 

 

 

 

 

TOTAL LIABILITIES

 

 

(1,875)

(1,216)

 

 

 

 

 

NET ASSETS

 

 

1,403

4,088

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

 

 

Equity attributable to owners

of the Parent:

 

 

 

 

Share Capital

 

 

91

91

Share Premium Account

 

 

5,661

5,661

Share Option Reserve

 

 

147

-

Retained Earnings

 

 

(4,496)

(1,664)

 

 

 

 

 

TOTAL EQUITY

 

 

1,403

4,088

 

 

     

* The Comparative figures have been restated in accordance with Note 3.

 

 

 

ECSC Group plc

Consolidated Cash Flow Statement

For the 6 months ended 30 June 2018

 

Note

 

6 months

ended

30 June

2018

£'000

 

*

6 months

ended

30 June

2017

£'000

Cash Flow from Operating Activities:

 

 

 

 

 

 

 

(Loss)/Profit before Taxation

 

(817)

(1,657)

 

 

 

 

Grant Income Adjustment

7

(79)

(45)

 

 

 

 

Adjustment for:

 

 

 

Amortisation of Intangibles

12

73

50

Depreciation of Property, Plant and Equipment

 

103

62

Share Based Payment

 

54

-

 

 

 

 

Cash from Operating Activities before changes in Working Capital

 

(666)

(1,590)

 

 

 

 

Change in Inventory

 

25

(69)

Change in Trade and Other Receivables

13

(15)

112

Change in Trade and Other Payables

15

185

(123)

 

 

 

 

Cash generated from Operating Activities

 

(471)

(1,670)

 

 

 

 

Corporation Tax received

 

-

-

 

 

 

 

Net Cash Flow from Operations

 

(471)

(1,670)

 

 

 

 

Acquisition of Property, Plant and Equipment

 

(46)

(264)

Development Costs capitalised

 

(80)

(75)

 

 

 

 

Net Cash Flow used in Investing Activities

 

(126)

(339)

 

 

 

 

Dividends Paid

 

-

-

Proceeds from Issuance of Shares

 

-

150

Exceptional Items - IPO costs

 

-

-

 

 

 

 

Net Cash used in Financing Activities

 

-

150

 

 

 

 

Net (decrease)/ increase in Cash & Cash Equivalents

 

(597)

(1,859)

 

 

 

 

Cash & Cash Equivalents at beginning of period

 

1,597

4,987

 

 

 

 

Cash & Cash Equivalents at end of period

 

1,000

3,128

* The Comparative figures have been restated in accordance with Note 3.
 

ECSC Group plc

Company Cash Flow Statement

For the 6 months ended 30 June 2018

 

 

Note

 

6 months

ended

30 June

2018

£'000

*

6 months

ended

30 June

2017

£'000

Cash Flow from Operating Activities:

 

 

 

 

 

 

 

(Loss)/Profit before Taxation

 

(818)

(1,657)

 

 

 

 

Grant Income Adjustment

7

(79)

(45)

 

 

 

 

Adjustment for:

 

 

 

Amortisation of Intangibles

12

73

50

Depreciation of Property, Plant and Equipment

 

94

62

Share Based Payment

 

54

-

 

 

 

 

Cash from Operating Activities before changes in Working Capital

 

(676)

(1,590)

 

 

 

 

Change in Inventory

 

25

(69)

Change in Trade and Other Receivables

13

(10)

112

Change in Trade and Other Payables

15

192

(123)

 

 

 

 

Cash generated from Operating Activities

 

(469)

(1,670)

 

 

 

 

Corporation Tax received

 

-

-

 

 

 

 

Net Cash Flow from Operations

 

(469)

(1,670)

 

 

 

 

Acquisition of Property, Plant and Equipment

 

(44)

(264)

Development Costs capitalised

 

(80)

(75)

 

 

 

 

Net Cash Flow used in Investing Activities

 

(124)

(339)

 

 

 

 

Dividends Paid

 

-

-

Proceeds from Issuance of Shares

 

-

150

Exceptional Items - IPO costs

 

-

-

 

 

 

 

Net Cash used in Financing Activities

 

-

150

 

 

 

 

Net (decrease)/ increase in Cash & Cash Equivalents

 

(593)

(1,859)

 

 

 

 

Cash & Cash Equivalents at beginning of period

 

1,592

4,987

 

 

 

 

Cash & Cash Equivalents at end of period

 

999

3,128

 

* The Comparative figures have been restated in accordance with Note 3.
 

ECSC Group plc

Consolidated Statement of Changes in Equity

For the 6 months ended 30 June 2018

 

 

 

Share Capital

£'000

Share  Premium Account

£'000

Share Option Reserve £'000

Retained

Earnings

£'000

Total

£'000

 

 

 

 

Balance at 30 September 2015

 

602

699

 

 

 

 

Profit and Total Comprehensive Income for the Period

 

(399)

(399)

 

 

 

 

Transaction with owners:

 

 

 

Dividends

 

(254)

(254)

Issue of Shares

 

-

85

Bonus Issue

 

-

-

Issue of Shares at IPO

 

-

5,000

Exercise of Share Options

 

-

733

Share Issue Costs

 

-

(313)

 

 

 

 

Balance at 31 December 2016

90

5,512

 

(51)

5,551

 

 

 

 

 

 

Profit and Total Comprehensive Income for the Period

-

-

-

(3,409)

(3,409)

 

 

 

 

 

 

Exercise of Equity Warrant

1

149

-

-

150

Grant of Share Options

 

-

93

-

93

 

 

 

 

 

 

Balance at 31 December 2017

91

5,661

93

(3,460)

2,385

   Effect of change in accounting standard for IFRS 15: Revenue from contracts with customers (see note 3)

 

Adjusted Opening balance*

91

5,661

93

(3,699)

2,146

 

 

 

 

 

 

Profit and Total Comprehensive Income for the Period

-

-

-

(795)

(795)

 

 

 

 

 

 

Grant of Share Options

-

-

54

-

54

 

 

 

 

 

 

Balance at 30 June 2018

91

5,661

147

(4,494)

1,405

 

 

 

* Adjusted Retained Earnings accordance with Note 3.

 

 

 

 

ECSC Group plc

Company Statement of Changes in Equity

For the 6 months ended 30 June 2018

 

 

 

Share Capital

£'000

Share  Premium Account

£'000

Share Option Reserve £'000

Retained

Earnings

£'000

Total

£'000

 

 

 

 

 

 

Balance at 30 September 2015

22

75

 

602

699

 

 

 

 

 

 

Profit and Total Comprehensive Income for the Period

-

-

 

(399)

(399)

 

 

 

 

 

 

Transaction with owners:

 

 

 

 

 

Dividends

-

-

 

(254)

(254)

Issue of Shares

2

83

 

-

85

Bonus Issue

26

(26)

 

-

-

Issue of Shares at IPO

30

4,970

 

-

5,000

Exercise of Share Options

10

723

 

-

733

Share Issue Costs

-

(313)

 

-

(313)

 

 

 

 

 

 

Balance at 31 December 2016

90

5,512

 

(51)

5,551

 

 

 

 

 

 

Profit and Total Comprehensive Income for the Period

-

-

-

(3,411)

(3,411)

 

 

 

 

 

 

Exercise of Equity Warrant

1

149

-

-

150

Grant of Share Options

 

-

93

-

93

 

 

 

 

 

 

Balance at 31 December 2017

91

5,661

93

(3,462)

2,383

   Effect of change in accounting standard for IFRS 15: Revenue from contracts with customers (see note 3)

 

Adjusted Opening balance*

91

5,661

93

(3,700)

2,145

 

 

 

 

 

 

Profit and Total Comprehensive Income for the Period

-

-

-

(796)

(796)

 

 

 

 

 

 

Grant of Share Options

-

-

54

-

54

 

 

 

 

 

 

Balance at 30 June 2018

91

5,661

147

(4,496)

1,403

 

 

 

* Adjusted Retained Earnings accordance with Note 3.
 

ECSC Group plc

Notes to the Group Condensed Consolidated Interim Financial Statements

For the 6 months ended 30 June 2018

 

 

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 financial statements for the year ended 30 June 2018 were approved by the Board of Directors on 10 September 2018

 

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 financial statements for the period ended 30 June 2018, which are unaudited, have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations (collectively 'IFRS') issued by the International Accounting Standards Board ('IASB') as adopted by the European Union ('adopted IFRS').

 

The financial statements for the period ended 30 June 2018 (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 IFRS.

 

The financial statements have been presented in thousands of Pounds Sterling (£'000, GBP) as this is the currency of the primary economic environment that the Company operates in.

 

The 30 June 2017 comparative figures have been restated to adopt IFRS 15. Revenue in Statement of Profit and Loss (SPL) has been reduced by £73k to reflect Managed Services revenue under IFRS 15 in the period 30 June 2017

 

The Statement of Financial Position (SFP) has also been restated under the Trade and Other Payables to reflect the adjustment in deferred income of £73k.

 

On the Statement of Changes in Equity a £238k adjustment has been made to the opening balance at
January 2018 in Retained Earning as follows to reflect changed in deferred income under IFRS 15:

 

Group:       £3,460k adjusted to £3,699k under IFRS 15

Company: £3,462k adjusted to £3,700k under IFRS 15

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.

The Directors have adopted application of IFRS 15 "Revenue from contracts with customers" from 1 January 2018, applying the fully retrospective method of transition. 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.

The adoption of IFRS 15 will impact the timing of the recognition of set-up revenues at the commencement of a new Managed Service contract. Under IAS 18, the set-up element of a Managed Service contract was recognised as revenue in full on delivery of the respective products and services, with the Managed Service element deferred and released to revenue over the term of the contract. Under IFRS 15, the set-up element also has to be deferred and recognised as revenue over the term of the contract.

 

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.

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 financial statements.

 

4.3            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 Prepaid Support contracts are deferred in the balance sheet and recognised on utilisation of services by the client. Remote Support revenue is included within Consulting in note 6.

Revenue from Managed Services contracts are deferred and recognised on a straight line basis over the term of the contract.

Revenue from the sale of products is recognised when the significant risks and rewards of ownership have been transferred, which is considered to occur when the software or hardware product has been delivered to the client.

 

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

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.

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 and treated as a government grant. Government Grant Income also includes other grants received from government agencies (see note 7).

 

4.6            Operating Profit

Operating Profit is stated after all expenses, including those considered to be exceptional, but before finance income or expenses. Exceptional items are items of income or expense which, because of their nature or size, require separate presentation to allow shareholders to better understand the financial performance of the period and allow comparison with prior years.

 

4.7            Foreign Currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange prevailing at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange prevailing at the date of the transaction. Exchange differences are recognised in Operating Profit.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating those prevailing when the transactions took place. All assets and liabilities of overseas entities are translated at the rate prevailing at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in Other Comprehensive Income and accumulated in the foreign exchange reserve.

 

4.8 Employee Benefits

Short-Term Benefits

Wages, salaries, paid annual leave and sick leave, bonuses and non-monetary benefits are accrued in the period in which the associated services are rendered by employees of the Company.

Defined Contribution Pension Scheme

The Company operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the Company. The annual contributions are charged to the Statement of Comprehensive Income. The Company also contributes to the personal pension plans of the Directors in accordance with their Service Contracts.

Employee Share Based Payments

Where equity settled share options are granted to employees (including Directors), the fair value of the options at the date of grant is charged to the Consolidated Statement of Comprehensive Income, as a Share Based Payment Charge, over the vesting period of the options, with a corresponding movement in the Share Option Reserve.

Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each reporting date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Non-market vesting conditions and market vesting conditions are factored into the fair value of the options granted. As long as all other vesting conditions are satisfied, a charge is made irrespective of whether the market vesting conditions are satisfied.

Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after modification, is also charged to the Consolidated Statement of Comprehensive Income over the remaining vesting period.

 

4.9            Operating Lease Agreements

Rentals applicable to operating leases where substantially all of the risks and rewards of ownership remain with the lessor are charged to the Statement of Comprehensive Income on a straight line basis over the full period of the lease. Any lease incentives are spread on a straight line basis over the full period of the lease.

 

4.10          Property, Plant and Equipment

All additions are initially recorded at historic cost. Depreciation is calculated so as to write-off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

 

    • Leasehold Property                     20% reducing balance

    • Office Furniture and Equipment    20% reducing balance

    • Computer Equipment                  33% straight line

    • Motor Vehicles                            20% straight line

 

4.11          Finance Lease Agreements

Where substantially all of the risks and rewards of ownership of a leased asset are transferred to the Group ('Finance Lease'), the asset is treated as if it had been transferred outright. The amount initially recognised as an asset is the lower of the fair value of the leased asset and the present value of the minimum lease payments payable over the term of the lease. The corresponding lease commitment is shown as a liability.

Lease payments are analysed between capital and interest. The interest element is charged to the Statement of Comprehensive Income over the period of the lease and is calculated to represent a constant proportion of the lease liability. The capital element reduces the liability owed to the lessor.

 

4.12          Research and Development Expenditure

Expenditure on research activities is recognised as an expense in the period in which it is incurred.

Expenditure on development activities generating an intangible asset is capitalised if all of the criteria set out in IAS 38 are met.  Capitalised assets are amortised over their useful economic life, which is considered to be five years.

If the criteria set out in IAS 38 are not met, expenditure on development activities is recognised as an expense in the period in which it is incurred.

 

4.13          Inventories

Inventories are carried at the lower of cost or net realisable value. Net realisable value is calculated based on the expected revenue from sale in the normal course of business less any costs to sell. Due allowance is made for obsolete and slow moving items.

 

4.14          Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial Assets

The Group and Company's Financial Assets include Cash and Cash Equivalents, Trade Receivables and Other Receivables.

    • Initial Recognition and Measurement

Financial Assets are classified, at initial recognition, as Loans and Receivables.

 

    • Subsequent Measurement

Loans and Receivables are measured at amortised cost, using the effective interest method, less impairment. Interest is recognised by applying the effective interest method, except for short-term receivables when the recognition of interest would be immaterial.

 

    • Derecognition of Financial Assets

The Company derecognises a Financial Asset only when the contractual rights to the cash flows from the asset expire, or it transfers the Financial Asset and substantially all the risks and rewards of ownership of the asset to another entity.

 

Financial Liabilities and Equity Instruments

The Group and Company's Financial Liabilities include Trade Payables, Accruals, Other Payables and Finance Leases. Financial Liabilities are classified as Financial Liabilities measured at amortised cost.

 

    • Classification as Debt or Equity

Financial Liabilities and Equity Instruments issued by the Company are classified according to the substance of the contractual arrangements entered into and the definitions of a Financial Liability and an Equity Instrument.

    • Equity Instruments

An Equity Instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Equity Instruments are recorded at the proceeds received, net of direct issue costs.

    • Trade Payables, Other Payables and Accruals

Trade Payables, Accruals and Other Payables are initially measured at fair value, net of transaction costs, and are subsequently measured at amortised cost, where applicable, using the effective interest method, with interest expense recognised on an effective yield basis.

     

4.14          Financial Instruments (continued)

    • Finance Leases

Finance Leases are treated as Financial Liabilities measured at amortised cost.

    • Derecognition of Financial Liabilities

The Company derecognises financial liabilities when the Company's obligations are discharged, cancelled or expire.

Offsetting of Financial Instruments

Financial Assets and Financial Liabilities are offset, and the net amount reported in the Statement of Financial Position if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the assets and settle the liabilities simultaneously.

 

4.15          Cash and Cash Equivalents

Cash and Cash Equivalents comprise cash on hand and demand deposits, and other short-term highly liquid investments which are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value.

 

4.16          Impairment of Assets

Financial Assets

A Financial Asset is assessed at each reporting date to determine whether there is any objective evidence that it is impaired. A Financial Asset is considered to be impaired if objective evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset.

An impairment loss in respect of a Financial Asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the original effective interest rate. An impairment loss in respect of an available-for-sale Financial Asset is calculated by reference to its fair value.

Individually significant Financial Assets are tested for impairment on an individual basis. The remaining Financial Assets are assessed collectively in groups that share similar credit risk characteristics.

An impairment loss is recognised in profit and loss. Any cumulative loss in respect of an available-for-sale Financial Asset recognised previously in equity is transferred to the Statement of Comprehensive Income.

An impairment loss is reversed if the reversal can be related objectively to an event occurring after the impairment loss was recognised. For Financial Assets measured at amortised cost and available-for-sale Financial Assets that are debt securities, the reversal is recognised in profit and loss. For available-for-sale Financial Assets that are equity securities, the reversal is recognised directly in equity.

 

Non-Financial Assets

The carrying amounts of the Company's Non-Financial Assets, other than Deferred Tax Assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated.

The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and risk specific to the asset. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets.

An impairment loss is recognised if the carrying amount of an asset or its cash generating unit exceeds its estimated recoverable amount. Impairment losses are recognised in profit and loss.

Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

 

4.17          Corporation Tax

Corporation Tax expense represents the sum of the tax currently payable and Deferred Tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the Statement of Comprehensive Income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are not taxable or tax deductible.

The Company's liability for current tax is calculated using tax rates (and tax laws) that have been enacted or substantively enacted by the end of the financial period.

Government tax credits available on eligible Research and Development expenditure and not reclaimable through other means are recognised as Other Income and treated as a government grant. This applies when there are no taxable profits against which to offset the tax credit. The amount receivable by the Group and Company is shown on the face of the balance sheet within Corporation Tax Recoverable.

 

4.18          Deferred Tax

Deferred Tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax.

Deferred Tax Assets are recognised only to the extent that the Directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

Deferred Tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

 

4.19          Contingent Liabilities and Contingent Assets

A Contingent Liability is a possible obligation that arises from past events and whose existence will only be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company.  It can also be a present obligation arising from past events that is not recognised because it is not probable that outflow of economic resources will be required or the amount of obligation cannot be measured reliably.

A Contingent Liability is not recognised but is disclosed in the Notes to the Accounts.  When a change in the probability of an outflow occurs so that the outflow is probable, it will then be recognised as a provision.

A Contingent Asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain events not wholly within the control of the Company. Contingent Assets are not recognised but are disclosed in the Notes to the Accounts when an inflow of economic benefits is probable.  When inflow is virtually certain, an asset is recognised.

 

4.20          Share Capital

Ordinary Share Capital is recorded at nominal value and proceeds received in excess of nominal value of shares issued, if any, is accounted for in the Share Premium Account. Both Ordinary Share Capital and Share Premium Account are classified as equity.  Costs incurred directly to the issue of shares are accounted for as a deduction from Share Premium Account; otherwise such costs are charged to the Statement of Comprehensive Income.

 

4.21          Operating Segments

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Company's other components.

An operating segment's operating results are reviewed regularly by Directors of the Company to assess performance and make decisions about resource allocation.

The Board considers that the Company's activity constitutes three operating and three reporting segments as defined under IFRS 8.

 

4.22    Related Parties

 

Parties are considered to be related if one party has the ability (directly or indirectly) to control the other party or exercise significant influence over the other party in making financial and operating decisions.  Parties are also considered related if they are subject to common control or common significant influence.  Related parties may be individuals or corporate entities.

 

5.         Critical Accounting Judgements, Estimates and Sources of Estimation Uncertainty

 

In applying the accounting policies, the Directors may at times be required to make critical accounting judgements and estimates about the carrying amount of assets and liabilities. These estimates and assumptions, when made, are based on historical experience and other factors that the Directors consider are relevant.

The key estimates and assumptions concerning the future and other key sources of estimation uncertainty at the end of the financial year, that have significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are stated below.

 

Going Concern

Management apply their judgement in reviewing whether the Group has adequate resources to continue in operational existence for the foreseeable future, which is considered to be at least the next 12 months. The basis for this judgement is detailed in note 4.2.

 

Revenue Recognition

Management consider the nature of the Company's contracts with clients and recognise revenue on an appropriate basis in accordance with IFRS 15. This process involves the use of judgements and estimates.

 

Development Costs Capitalised & Amortised

Management apply their judgement in determining whether an identified intangible software asset meets the criteria for capitalisation under IAS 38.

Development Costs capitalised into Intangible Assets are amortised over management's estimate of the useful economic life of the asset recognised.

 

Research and Development ('R&D') Tax Claim

The R&D Tax Claim is based on management's estimate of the amount of development staff time expended on projects judged to be dedicated to overcoming technological uncertainties in the cyber security field.

 

6.         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: Consulting (including Remote Support services), Managed Services, 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 year ended 30 June 2018 were as follows:

 

 

 

 

6 months

ended

30 June 2018

£'000

 

6 months

ended

30 June 2017

£'000

Revenue

 

 

Consulting

1,557

1,144

Managed Services

765

505

Vendor Products

161

53

Re-chargeable Items

166

151

 

2,649

1,853

 

 

 

Gross Profit

 

 

Consulting

886

642

Managed Services

314

225

Vendor Products

31

13

Re-chargeable Items

(11)

13

 

1,220

893

 

 

 

7.         Other Income

 

 

 

 

6 months ended

30 June 2018

£'000

 

6 months ended

30 June 2017

£'000

Grant Income

79

45

 

 

A credit has been recognised within Other Income as a result of R&D Tax Credit surrenders. For the period ended 30 June 2018, the surrender resulted in a credit of £79k, included within Corporation Tax Recoverable.

 

 

 

8.         Adjusted EBITDA

 

 

 

6 months ended

30 June 2018

£'000

 

6 months ended

30 June 2017

£'000

Adjusted Operating (Loss)/Profit

(718)

(1,657)

Depreciation

103

62

Amortisation

73

50

Adjusted EBITDA

(542)

(1,545)

Exceptional Items

(99)

-

EBITDA

(641)

(1,545)

 

 

 

9.         Adjusted (Loss)/Profit before Taxation

 

 

 

6 months ended

30 June 2018

£'000

 

6 months ended

30 June 2017

£'000

(Loss)/Profit before Taxation

(817)

(1,657)

Exceptional Items

99

-

Adjusted Profit before Taxation

(718)

(1,657)

 

 

 

10.       Taxation

 

Recognised in the Statement of Comprehensive Income

 

 

 

6 months ended

30 June 2018

£'000

 

6 months ended

30 June 2017

£'000

UK Corporation Tax - Prior Period Adjustment

-

-

UK Corporation Tax - Current Tax on Profit for the period

-

5

Corporate Tax Charge/(Credit)

        -

-

Deferred Tax Credit

(22)

(49)

 

(22)

(44)

 

Reconciliation of Effective Tax Rate

 

 

6 months ended

30 June 2018

£'000

 

6 months ended

30 June 2017

£'000

 

Profit/(Loss) before Tax

(817)

(1,657)

Tax at the UK Corporation Tax rate of 19.5% / 19.0%

(155)

(309)

Expenses not deductible for tax purposes

1

1

Income not taxable for tax purposes

-

(9)

Exercise of Share Options

-

-

Difference between current and deferred tax rates

-

-

Over/under provision in prior period - Corporation Tax

-

5

Over/under provision in prior period - Deferred Tax

(22)

(49)

Tax losses on which deferred tax not recognised

154

317

 

(22)

(44)

 

 

Deferred Tax Assets & Liabilities

 

 

 

6 months ended

30 June 2018

£'000

 

6 months ended

30 June 2017

£'000

 

 

 

Deferred Tax Assets

134

105

Deferred Tax Liabilities

(127)

(105)

Deferred Tax - Net Liability

7

-

 

 

Deferred Tax Assets of £134k are recognised in respect of unutilised trading losses, Share Based

Payments and short-term timing differences. Deferred Tax Liabilities of £127k arise on timing

differences in the carrying value of certain of the Company's assets for financial reporting

purposes and for corporation tax purposes. These will reverse as the fair value of the related

assets are depreciated over time. Deferred Tax balances have been calculated at the rate of 17%,

being the rate of Corporation Tax rate expected to be in force when the timing differences reverse.

 

 

10.            Taxation (continued)

 

Unutilised Trading Losses

 

The Company continues to carry forward unutilised trading losses of £4,324k (unutilised trading losses were

£3,831k as at 31 December 2017).

 

A Deferred Tax Asset of £102k has been recognised as at 30 June 2018

in respect of the unutilised trading losses. No further Deferred Tax Asset has been recognised because the

Board envisages that a significant period of time will be required to generate sufficient profits to utilise the

trading losses carried forward.

 

 

11.       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 (after adding-back exceptional costs incurred in the period; see note 17) by Diluted Number of Ordinary Shares.

 

The calculation of Basic, Diluted and Adjusted Earnings per Share is as follows

 

 

 

 

6 months ended

30 June 2018

£'000

 

6 months ended

30 June 2017

£'000

Net Profit attributable to Equity Holders of the Company

(795)

(1,613)

Add back Exceptional Items - IPO Costs

99

-

Adjusted Profit

(696)

(1,613)

 

 

 

Number of Ordinary Shares ('000):

 

 

Initial weighted average

8,994

8,994

Bonus Issue

 

 

Exercise of Share Options

14

-

Equity Warrant

90

-

Basic number of Ordinary Shares

9,098

8,994

Weighted average of dilutive shares in period

328

156

Diluted Number of Ordinary Shares

9,426

9,150

 

 

 

Basic earnings per share

(8.7)

(17.9)

Diluted earnings per share*

(8.4)*

(17.6)*

Adjusted earnings per share

(7.4)

(17.6)

 

 

* In accordance with IAS 33, the effect of anti-dilutive potential shares has been ignored

 

On 28 October 2016, the Company passed a resolution to consolidate the A and B Ordinary Shares of £1 each in issue into a single class of shares. A resolution was then passed to split each existing Ordinary Share of £1 each in issue into 100 Ordinary Shares with a nominal value of 1 pence each. The Company then passed a resolution to issue 110 Ordinary Shares of 1 pence each by way of a Bonus Issue pro rata to existing shareholders. In accordance with IFRS this has been reflected in weighted average number of Ordinary Shares above.

 

 

 11.     Earnings per Share (continued)    

 

During the period ending 30 June 2018, Ordinary Shares were issued as follows:

 

    • On 27 April 2018, David Mathewson, Non-Executive Chairman exercised options over 6,411 Ordinary Shares in the Company at nil cost per share.

 

    • On 02 May 2018, a former director exercised options of 8,041 Ordinary Shares in the Company at nil cost per share.

 

 These issues were taken into account in calculating the Basic Number of Ordinary Shares.

 

During the period ended 30 June 2018, the following dilutive event occurred:

 

    • On 18 April 2018, the Company granted options over 200,000 Ordinary Shares to the Non-Executive Directors.

 

 

 

12.       Intangible Assets

 

GROUP & COMPANY

 

Development Cost

 

 

£'000

Cost

 

 

 

As at 1 January 2017

567

Additions

75

As at 30 June 2017

642

 

 

As at 1 July 2017

642

Additions

62

As at 31 December 2017

704

 

 

As at 1 January 2018

704

Additions

80

As at 30 June 2018

784

 

 

Amortisation

 

 

 

As at 1 January 2017

204

Amortisation Charge for the 6 months

50

As at 30 June 2017

254

 

 

As at 1 July 2017

254

Amortisation Charge for the 6 months

50

As at 31 December 2017

304

 

 

As at 1 January 2018

304

Amortisation Charge for the 6 months

73

As at 30 June 2018

377

 

 

Net Book Value

 

As at 30 June 2017

388

 

 

As at 31 December 2017

400

 

 

As at 30 June 2018

407

 

 

13.       Trade Receivables and Other Receivables

 

 

 

 

GROUP

as at

30 June

2018

£'000

 

GROUP

as at

30 June

2017

£'000

 

COMPANY

as at

30 June

2018

£'000

 

COMPANY

as at

30 June

2017

£'000

Trade Receivables

946

885

946

885

Other Receivables

8

8

8

8

Intercompany Receivables

-

-

98

-

Prepayments and Accrued Income

190

101

161

101

 

1,144

994

1,213

994

 

The carrying amount of Trade Receivables and Other receivables approximates to their fair value.

 

Intercompany Receivables represent loans provided by ECSC Group plc to ECSC Australia Pty Ltd. The loans are repayable on demand.

 

 

14.       Cash & Cash Equivalents

 

 

 

 

GROUP

as at

30 June

2018

£'000

 

GROUP

as at

30 June

2017

£'000

 

COMPANY

as at

30 June

2018

£'000

 

COMPANY

as at

30 June

2017

£'000

Cash & Cash Equivalents

1,000

3,128

999

3,128

 

 

 

15.       Trade Payables and Other Payables

 

 

 

 

GROUP

As at

30 June

2018

£'000

GROUP

As at

30 June

2017

£'000

COMPANY

As at

30 June

2018

£'000

COMPANY

As at

30 June

2017

£'000

Trade Payables

276

204

272

204

Other Taxation and Social Security

348

256

346

256

Accruals

242

238

242

238

Deferred Income

894

502

894

502

Intercompany Payables

-

-

41

-

Other Payables

40

16

36

16

 

1,800

1,216

1,831

1,216

 

The carrying amount of trade and other payables approximates to their fair value due to their short term nature.

 

 

16.       Finance Leases

 

The Group entered into a Finance Lease in November 2017 to fund investment in IT equipment. Capital repayments under the Finance Lease are as follows:

 

 

 

GROUP

As at

30 June

2018

£'000

GROUP

As at

30 June

2017

£'000

COMPANY

As at

30 June

2018

£'000

COMPANY

As at

30 June

2017

£'000

Payable in one year or less

20

-

20

-

Payable between one and two years

20

-

20

-

Payable between two and five years

11

-

11

-

Payable in five years or more

-

-

-

-

Finance Lease Balance

51

-

51

-

 

 

Group & Company

 

 

Capital

Interest

Total

Payable in one year or less

20

1

21

Payable between one and two years

20

1

21

Payable between two and five years

11

-

11

Payable in five years or more

-

-

-

Finance Lease Balance

51

2

53

 

 

 

There have been no cash flows arising from changes in liabilities from financing activities

 

 

17.       Exceptional Costs

 

During the period ended 30 June 2018, the Company undertook a restructuring exercise to reduce its operating costs and mitigate its monthly operating losses. Cost savings were achieved by reducing headcount in a number of departments and by reducing overhead costs.

 

Exceptional Costs are analysed as follows:

 

 

 

6 months ended

30 June 2018

£'000

 

6 months ended

30 June 2017

£'000

Staff Related Costs

88

-

Car Termination Costs

11

-

Exceptional Costs

99

-

 

 

18.       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 Limited

28 Campus Road

Listerhills Science Park

Bradford

BD7 1HR

18 April 2017

Dormant

 

 

 

 

ECSC Labs Limited

28 Campus Road

Listerhills Science Park

Bradford

BD7 1HR

18 April 2017

Dormant

 

 

 

 

ECSC Australia Limited

28 Campus Road

Listerhills Science Park

Bradford

BD7 1HR

29 September 2016

Intermediary holding company

 

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 Pty Limited

Governor Phillip Tower Level 36

1 Farrer Place

Sydney

NSW 2000

20 March 2017

Provision of professional cyber security services

 

The share capital of each Group entity is as follows:

Entity

Ordinary Shares in Issue

Nominal Value

Investment at Cost

ECSC Services Limited

1 share

£1

£1

ECSC Labs Limited

1 share

£1

£1

ECSC Australia Limited

1 share

£1

£1

ECSC Australia Pty Limited

100 shares

AUD 1

 AUD 100

 

 

 

 

Total

 

 

£60

 

* AUD = Australian dollars


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
END
 
 
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