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Highlights

  • NCC Group reported H1FY25 profit before tax of GBP 16.6 million, up from GBP 8.4 million in H1FY24.
  • The Group anticipates Cyber Security revenue growth from FY26 amid shift to strategic engagements.
  • NCC Group declares interim dividend of 1.50p per share, unchanged from previous year.

NCC Group plc (LSE:NCC), a UK-based global cybersecurity and software escrow company, reported interim results for the six months ended 31 March 2025.

In the first half of the financial year 2025(H1FY25) the company delivered a profit before tax of GBP 16.6 million for the period, up from GBP 8.4 million in the same period last year. This increase was primarily due to a one-time profit of GBP 11.3 million resulting from the GBP 65.6 million sale of its non-core Fox Crypto business in March 2025. Adjusted EBITDA for the half-year stood at GBP 21.5 million, down from GBP 25.5 million in H1 FY24. The Group stated that full year Adjusted EBITDA expectations remain in line with prior guidance, supported by stable gross margins and operational efficiencies.

As a result of the Fox Crypto sale, the company has cleared its debt position, reporting net cash of GBP 0.3 million as of 31 March 2025. This compares to a net debt of GBP 53.5 million a year earlier. The sale proceeds and an April 2025 refinancing agreement have positioned the Group for future strategic moves, including potential mergers and acquisitions.

The Escode division, which includes NCC’s software escrow services, grew revenues by 1.8% on a constant currency basis and contributed GBP 14.8 million in Adjusted EBITDA. This marks the tenth straight quarter of year-on-year revenue growth for the segment. The Group is currently assessing strategic options for Escode, including a possible sale, and is in discussions with interested parties. Management noted that a completed transaction could support shareholder capital returns and additional investment in its Cyber Security division.

On the other hand, saw revenue decline by 6.6% on a constant currency basis, with an Adjusted EBITDA of GBP 11 million. The decline was attributed to reduced demand for high-volume, lower-value compliance and testing services, driven by macroeconomic uncertainty in both autumn and spring. However, the company noted a gradual shift toward more strategic service offerings, such as Managed Services, Identity & Access Management, and Operational Technology Security. These areas typically involve longer sales cycles but align with the Group's global delivery strategy and partnerships.

NCC Group reaffirmed its forecast for marginally lower full-year revenues (excluding non-core disposals), with single-digit revenue growth expected in Escode and a roughly 5% decline anticipated in Cyber Security. The company projects a return to growth in its Cyber Security operations beginning in FY26, supported by a growing sales pipeline and a transition toward long-term client engagements.

The Board declared an interim dividend of 1.50 pence per ordinary share, consistent with the prior year. This marks the 20th consecutive year of dividend payments by the company.

Management noted that the recently secured GBP 120 million borrowing facility and the proceeds from the Fox Crypto disposal have strengthened the Group’s financial flexibility. These developments are expected to support future acquisitions focused on expanding the Cyber Security business.