19th Jun 2025 10:04
(Alliance News) - NCC Group PLC on Thursday said pretax profit nearly doubled in the first half of its financial year, as a one-off gain offset lower revenue, and it is in talks to sell its Escode business.
The Manchester, England-based cybersecurity company reported pretax profit of GBP16.6 million for the six months that ended March 31, up from GBP8.4 million a year earlier.
Revenue fell 6.0% to GBP156.8 million from GBP166.8 million, led by its Cyber Security division, where revenue fell 7.8% to GBP123.5 million from GBP133.9 million.
NCC noting a decline in higher-volume, lower-value testing and compliance engagement, owing to client reactions to economic uncertainties in autumn and spring.
NCC said Cyber Security is making a pivot towards "strategic client relationships". Its sale pipeline is building, and the business is expected to return to revenue growth in financial 2026.
By contrast, revenue at Escode, the business up for sale, rose 1.2% to GBP33.3 million from GBP32.9 million.
NCC attributed the improved bottom line amid the weaker revenue to a one-off profit of GBP11.3 million resulting from the sale of its Fox Crypto business for GBP65.6 million in March 2025.
Adjusted earnings before interest, tax, depreciation and amortisation were GBP21.5 million, down 16% from GBP25.5 million.
Shares in NCC were down 10% to 148.38 pence on Thursday morning in London.
NCC kept its interim dividend unchanged at 1.50p per share, noting that this marks 20 consecutive years of dividend payments.
Looking to the full-year, NCC expects revenue (excluding non-core disposals) to decline marginally, with adjusted Ebitda remaining in line with previous guidance. In December's results statement, NCC said it expects to achieve modest adjusted Ebitda gains.
Further, NCC updated on its Escode business, noting that it is now in discussions with "interested parties" regarding a potential sale. Back in April, NCC said it was investigating a number of options for the business, which provides software escrow services.
NCC said that the conclusion of a potential Escode transaction "would enable a significant return of capital to shareholders and further investment in the business."
Chief Executive Mike Maddison commented: "Demand for cyber security services has never been clearer, reflected in strong pipeline growth particularly in solutions related to our investment areas. Our success is driven by a deep penetration testing expertise, a developing global delivery model including our expanding team in the Philippines and strong technology partnerships.
"We are making progress reflecting the changing market and pivoting to strategic client relationships and projects underpinned by recurring revenue, multidisciplinary capabilities and global delivery."
By Christopher Ward, Alliance News reporter
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