NCC swings back to profit after turbulent period

NCC Group swung back into profit last year as the cyber security and risk company overhauled its strategy after a turbulent period.

The company posted pre-tax profit of £11.9m for the year to the end of May compared with a loss of £44.8m a year earlier.

Revenue from continuing operations rose 8.3% to £232.2m and adjusted organic revenue growth was 11.8%. NCC shares, which have doubled since March 2017, were up 10.3% to 222p at 11:15 BST.

NCC replaced its chairman and chief executive after losses and delays of several contracts triggered a profit warning in December 2016. New CEO Adam Palser has overhauled the company’s strategy and sold non-core businesses to capitalise on demand for cyber protection after a series of high-profile attacks on organisations’ computer systems.

Chris Stone, NCC’s chairman, said: “We have made good progress against the strategic goals that we set for ourselves at the start of the year. The business has been successfully stabilised following a period of volatility … While much remains to be done, I am confident that the building blocks for long term sustainable improvement in business performance and shareholder returns are starting to be put in place.”

Stone said organic revenue growth at NCC’s Assurance business and improving margins at its two operating divisions would push adjusted operating profit margins up buy about 1% a year for the next two years, leaving room for investment in the business.

NCC said Tim Kowalski would join as chief financial officer on 23 July, replacing Brian Tenner who leaves in August. Kowalski’s most recent job was as CFO at Findel for almost seven years until August 2017.