(Alliance News) - NCC Group PLC on Thursday said revenue rose but profit shrank in the first half of its financial year, due to acquisition costs.
The Manchester-based cybersecurity firm reported pretax profit of GBP8.4 million in the six months that ended November 30, down 13% from GBP9.7 million a year before.
The company blamed the decrease on administrative expenses that grew by 30% to GBP37.6 million from GBP29.0 million. This was largely due to remaining acquisition and integration costs from its purchase of the intellectual property management business of Iron Mountain Inc, which was completed in June last year.
Additionally, charges for the amortisation of acquired intangibles increased by 61% to GBP6.9 million from GBP4.3 million a year prior, due to the acquisition.
More positively, revenue amounted to GBP150.1 million in the half-year period, up 11% from GBP135.6 million a year before.
The company put this down to the "strong" underlying growth from its Assurance business, coupled with the "successful" integration and positive trading performance of the business it bought from Iron Mountain.
NCC held its interim dividend flat at 1.50p, with its dividend policy still under review.
Trading so far in the second half of the financial year has been in line with expectations, with sales order momentum in December and January. NCC expects a strong second half with further revenue growth, due to the recovery of global markets from the disruption that Covid-19 caused.
Shares in NCC were down 0.9% at 214.00 pence each on Thursday morning in London.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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