24th Jan 2019 08:50
LONDON (Alliance News) - NCC Group PLC on Thursday lifted its earnings expectations for financial 2019 following a surge in first half profit on strong US performance.
The cyber security firm said pretax profit rose by 58% to GBP8.7 million in the six months to the end of November 2018 from GBP5.5 million reported in the first half of financial 2018.
Revenue for the period increased to GBP126.0 million from GBP116.8 million, driven by US Assurance business which recorded 20% revenue growth to GBP37.7 million.
Overall, Assurance division reported 9.7% year-on-year growth in revenue to GBP107.1 million.
"We are pleased with the progress we have made, with continued growth in our core Assurance division and a particularly strong performance in the US," said Chief Executive Adam Palser.
Meanwhile, Escrow revenue for the half year fell slightly to GBP18.9 million from GBP19.2 million a year earlier, as 11% growth in the US was offset by 4.4% and 5.3% declines in the UK and Europe, respectively.
"While profits from our Escrow division fell slightly, our experience in the US has given us confidence that we can re-energise the growth of this business," added Palser.
The company declared an unchanged interim dividend of 1.5 pence per share.
Looking ahead, NCC Group said it now expects to deliver annual adjusted earnings before interest and taxes of GBP34 million, up from GBP31.0 million reported the year before. Previously, the company expected its adjusted Ebit to remain unchanged in its financial 2019.
In the first half, the company's adjusted Ebit totalled GBP14.8 million, up 7.2% year-on-year.
NCC Group expects to report its full year results on July 25.
The stock was trading 19% lower on Thursday at 149.40p a share.
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