23rd Mar 2020 11:19
(Alliance News) - Cybersecurity firm NNC Group PLC on Monday said it remains financially strong despite Covid-19 hitting trading.
NCC was trading in line with expectations for its year ending May 31 until the virus hit, it said. The outbreak led to cancellations in the Asia-Pacific region, and there have now also been delays and cancellations across Europe and North America.
The Manchester-based company said revenue has been particularly hurt in the Cyber Assurance division.
NCC is withdrawing all current guidance, it said, with the impact on revenue over the next few months difficult to assess.
Given many people are now working from home, NCC continued, the general level of the cyber threat has increased, meaning there will be more opportunities in the "new working environment".
NCC has a "strong" balance sheet. As of February 19, it had a committed revolving credit facility of GBP100 million and net debt of GBP22.0 million.
Chief Executive Adam Paiser said: "NCC is fully open for business and has taken steps to enable remote working with clients across the firm. We believe the group is well placed to manage its business risks successfully and take advantage of any opportunities once the global pandemic has subsided.
"Therefore, our objective is for NCC to emerge from the turbulence caused by Covid-19 in strong shape. To that end, we intend to preserve our specialist delivery capabilities and will balance short-term cost-saving actions against this priority. The board and executive management will closely monitor the emerging situation and, if required, will introduce further mitigating actions."
NCC will release the results for the year ending May on July 23.
Shares were 4.0% lower on Monday morning in London at 138.40 pence each.
By George Collard; [email protected]
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