13th Dec 2016 07:39
LONDON (Alliance News) - NCC Group PLC on Tuesday said it expects earnings in its full financial year to be lower than its earlier expectations, despite reporting growth in the first half.
The cyber security and risk mitigation company said adjusted earnings before interest, tax, depreciation and amortisation in the six months to November 30 grew to GBP21.3 million from GBP18.5 million a year before, as revenue rose to GBP125.8 million from GBP93.5 million.
In the Assurance division, revenue increased to GBP104.8 million from GBP73.8 million, while revenue grew to GBP18.7 million from GBP16.4 million in the Escrow division.
But due to the cancellation of three large contracts and one deferral in the Assurance division, NCC said it does not expect to be able to make up the profitability lost in the current full year, meaning adjusted Ebitda for its financial year to the end of May will be lower than previous expectations.
Adjusted Ebitda will, however, still rise by as much as 5% in the full year to between GBP45.5 million and GBP47.5 million.
"Although disappointing, these contract cancellations do not reflect any structural change in our Assurance business. We will continue to exploit our leading worldwide position and are expecting to see solid organic growth in both this and in future years in fast growing markets," Chief Executive Rob Cotton said in a statement.
"The long-term outlook for our Assurance business is unchanged, and we remain confident in the future prospects for both of our divisions. Overall the group's forward order books and renewals have increased to GBP112.8 million from the GBP108.8 million level published on October 20," he added.
By Karolina Kaminska; [email protected]; @KarolinaAllNews
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