Principal Risks and Uncertainties

ECSC Group plc (‘ECSC’ or ‘the Company’ or ‘the Group’) is exposed to a number of Macro, Business and Financial risks. The Directors take a proactive approach to the identification and mitigation of these risks.



Summary of Risks

The most significant risks to the Group are summarised in the table below. These risks are explained in further detail following the summary. The table does not include all the potential risks associated with Group activities and are not in any order of priority.

Principal Risks Mitigating Actions/Factors
Economic conditions Expenditure on cyber security has become non-discretionary in nature and is less sensitive to economic fluctuations
Rapid technological change Investment in proprietary intellectual property
Competition Maintaining a broad, full-service offering
Cyber security breach Certifications to ISO 27001, PCI DSS and Cyber Essentials; avoidance of technologies associated with common security breaches
Reputation Consistent focus on legal, financial, regulatory and technological compliance
Dependence on key personnel Board and Senior Management structure and remuneration is designed to reduce the risks associated with the loss of any single person
Ability to recruit and retain skilled personnel Ongoing development of a wide range of employee benefits and incentives, career progression and technical development
Reliance on key systems Disaster recovery and business continuity plans
Client acquisition Sale team training and development, partner programme, and expanded marketing activities
Client retention Expanded service delivery function and service management layer
Future funding requirements Flotation on the Alternative Investment Market of the London Stock Exchange

Macro Risks

Economic Conditions

The Group could be affected by national and international economic factors outside its control, including an economic slowdown, changes in the monetary and fiscal policies of the Government, exchange rate fluctuations, commodity price volatility, inflation, increases in interest rates and banking sector conditions.

Any UK economic downturn, either globally or locally, may have an adverse effect on the demand for the Group’s services. A more prolonged economic downturn may lead to an overall decline in the volume of the Group’s activities and sales, restricting the Group’s ability to realise a profit.

However, given the proliferation of cyber security breaches and the damage caused, in financial and reputational terms, expenditure by corporates on cyber security is increasingly of a non-discretionary nature, such that demand has become less sensitive to general economic fluctuations.

ECSC Group plc

ECSC Group plc is incorporated and registered in England and Wales under the Companies Act 2006 with Registered No. 3964848. Its main country of operation is the UK.

VAT No. 746361914

Contact

28 Campus Road
Listerhills Science Park
Bradford
BD7 1HR
United Kingdom

+44 (0) 1274 736 223

investor@ecsc.co.uk

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ISIN: ECSC
SEDOL: BYMJ4J9