(Alliance News) - NCC Group PLC on Wednesday said it swung to an annual loss despite revenue rising, although the company still maintained its final dividend.
In the financial year that ended May 31, the Manchester-based cybersecurity company said it swung to a pretax loss of GBP4.3 million from a profit of GBP31.0 million a year earlier.
This was despite revenue rising 6.4% to GBP335.1 million from GBP314.8 million.
Cost of sales rose 11% to GBP203.1 million from GBP182.2 million, while administrative expenses increased 23% to GBP90.6 million from GBP73.4 million.
Despite the downbeat profit performance, NCC maintained its final dividend payment at 3.15 pence per share. Its total dividend amounted to 4.65p per share, also unmoved from the prior year.
"While the market conditions we announced in our March trading update have impacted our [financial 2023] revenue performance and profitability, we are confident about the medium-term growth drivers for cyber security and that continued progress on strategic actions will position the business to deliver greater growth and profitability in the years ahead," said Chief Executive Officer Mike Maddison.
"I am pleased to report that since the launch of our 'next chapter strategy in February 2023, the group has delivered foundational components of strategic change to create a more agile and resilient business, improve profitability and deliver shareholder value."
Back in March, it said it was grappling with a "further deterioration in the macro-economic and market environment", citing lay-offs in the US technology sector.
Looking ahead, NCC said it expects its financial 2024 to be a period of considerable change, targeting modest improvement in group adjusted operating profit in both the Assurance and Software Resilience businesses.
It said it is confident that continued execution of the strategy will deliver double-digit revenue growth and mid-teens operating profit margins from [financial 2026] onwards.
Shares in NCC were up 2.8% to 103.20 pence each in London on Wednesday, late morning.
By Greg Rosenvinge, Alliance News reporter
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