NCC expects return to 'marginal' growth after annual sales slip

(Sharecast News) - NCC Group has said it expects to return to growth this year after the cybersecurity and software escrow business reported a small decline in both revenues and profits over the 12 months to 30 September.

Revenues were down 2.6% at £293.9m, as a 2.2% increase in turnover at the Escode division to £66.5m was offset by a 4.0% fall in the cyber arm to £227.4m.

Bottom-line pre-tax profit improved to £20.6m from a £17.8m loss the year before, mainly a result of a one-off £11.4m profit from the sale of the Fox Crypto business in March.

However, adjusted EBITDA fell to £40.6m from £42.1m the year before.

However, the final dividend was hiked to 3.15p per share, up from 1.5p the year before, taking the total payout for the year to 6.15p.

NCC, which announced in April that it was looking at several options for Escode, including a possible sale, said that it would provide an update "as and when appropriate".

"If a sale is concluded, this would allow NCC Group to become solely a pure-play Cyber Security service company and consider a significant return of capital to shareholders," said chief executive Mike Maddison.

The company is also reviewing all options for its cyber arm, as announced in July, to focus on "operational excellence and continuing our transformation journey".

Looking ahead, group revenues for the year to September 2026 are expected to "grow marginally", with both the Escode and cyber divisions experiencing low single-digit growth, while adjusted EBITDA is tipped to grow faster than revenue.

"While the macro environment remains challenging, demand for cyber security, resilience and regulatory assurance continues to grow. We are confident in our strategy to deliver sustainable growth and long-term success," Maddison said.

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