NCC trades in line, predicts faster growth

NCC said full-year trading was in line with expectations as the cyber security adviser reported an increase in first-half profit and predicted faster growth ahead.

Adjusted operating profit rose 1.8% to £17m in the six months to the end of November as revenue rose 2.2% to £135.6m.

Pretax profit rose 18.9% to £10.7m and NCC held its interim dividend at 1.5p a share. NCC shares rose 4.7% to 12p at 09:04 GMT.

The company said Covid-19 had caused companies to delay spending on protecting their computer systems from attack but that growth would accelerate as necessary investment was made.

Adam Palser, chief executive, said: "I am delighted with our trading performance for the period. Full-year trading is in line with our expectations, we are also maintaining our interim dividend of 1.5p and our balance sheet strength and trading resilience give us a foundation to invest in organic and in-organic opportunities.

"The rapid adoption of cloud technologies, coupled with spending decisions being delayed in some customer segments, has built up a 'compliance debt' that must be paid down in the future."

The company said it had pre-IFRS16 net cash of £3m at the end of November compared with a net debt of £20.8m a year earlier.