9th Oct 2014 08:28
LONDON (Alliance News) - NCC Group PLC Thursday said revenue rose in the first quarter of its current financial year, building on sales and growth momentum it built last year.
The IT assurance company said revenue in the first four months to end of September was up 11% on last year to GBP39.5 million, compared with GBP35.6 million last year. Growth was 13% at constant currencies, it said.
NCC said its international operations now account for over 40% of overall revenue, driven by strong growth in the US and mainland Europe.
"We have performed well in our traditionally quietest period with strong recurring revenues and good forward visibility. Even though it is still early in the year, we are confident that we will maintain our double-digit growth, strong cash generation and will meet our expectations for the financial year to May 31, 2015," said Chief Executive Rob Cotton in a statement.
NCC said revenue from its Escrow division rose 6% on a constant currency basis and 4% on a reported basis, driven by a strong performance from its international businesses. It said renewals are forecast to be GBP18.3 million for the current financial year, up on the prior year, while its global verification order book continues to be strong.
Its said its Escrow UK division has seen revenue growth in line with expectations at 5%, while in mainland Europe, the smallest part of the Escrow Division, revenue was flat on a constant currency basis and down 8% on a reported basis. In North America, revenue grew by 12% at constant currency rates and by 4% on a reported basis.
The company's Assurance division continues to perform strongly, up 16% on a constant currency basis and by 14% on a reported basis in the first fourth months, although it said the rate of growth was held back by its decision to end a number of low-margin software testing contracts.
In its last financial year ended May 31, NCC raised its total dividend after posting a higher pretax profit and revenue. It also expressed confidence for the year ahead as it ramps up its recently established Domain Services division with the launch of its new .trust domain.
NCC said Thursday that the rollout of its Domain Services has been held back by some delays.
"The rollout of our Domain Services has been held back by delays in the assignment process for .trust. We now expect this unique service providing organisations with safer Internet to go live early in the new calendar year," said Cotton.
NCC said it currently expects that the assignment, and the various predefined testing phases that need to be completed before any domain can become active, will be finished before the end of February 2015.
It said its also in advanced discussions with a number of customers to offer a carefully managed migration of the domains to .trust.
"The group has invested GBP1.4 million in the project during the current financial year, total capital expenditure to date GBP6.4 million. It remains the board's view that the division is expected to become profitable in financial year 2015/16, as it achieves a critical mass of customers," the company said.
NCC said its will releases its interim results for the six months to November 30 on January 22, 2015.
NCC shares were up 3.2% at 191.00 pence Thursday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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