NCC Group trading as expected through first half

Cybersecurity and software escrow company NCC Group said in a trading update on Thursday that its performance in the first half aligned with expectations, with its outlook for the full year unchanged.

The London-listed firm said that in the cybersecurity segment, managed services revenue showed strong growth, while revenue in technical assurance remained stable following reductions in the second half of the prior year.

Planned improvements in utilisation during the first half contributed to an enhanced gross margin percentage.

NCC’s software resilience business, Escode, has experienced two consecutive quarters of year-on-year revenue growth, driven by increased verification revenues and contract pricing adjustments.

The company said it made progress in achieving its target of £5m in cost efficiencies for the 2024 financial year, as announced in September.

Additionally, net debt pre-IFRS 16 remained consistent with management’s expectations for the half-year.

The firm said it was advancing its ‘Next Chapter’ strategy, with significant developments since September.

Carolyn Hieken was appointed chief commercial officer, bringing over 20 years of technology and cybersecurity sales leadership experience and completing the formation of the executive committee.

NCC Group had also established a strategic partnership with TransUnion to offer cyber protection to insurance customers globally.

Furthermore, the company’s Manila office was operational and would officially open in January.

“I’m delighted to have completed the formation of the new executive leadership - a team which has deep experience operating within the cyber security industry,” said chief executive officer Mike Maddison.

“We are continuing to make good progress on all aspects of our ‘Next Chapter’ strategy, and our trading and outlook are in line with the expectations outlined in September.”

NCC Group said it would release its half-year results for the six months ending 30 November on 25 January - earlier than the previously announced date of 1 February.

At 1041 GMT, shares in NCC Group were up 1.33% at 121.8p.

Reporting by Josh White for Sharecast.com.