Cyber security revenues push higher at NCC

Updating on trading, NCC said cyber security revenues had risen by around 6% on a constant currency basis in the second half, following a 9.4% slide in the first.

As a result, annual cyber security revenues are on course to decline by 2%, with group like-for-like revenues off 1% at £324m.

Adjusted operating profits, meanwhile, are expected to come in at £31m, helping by improvements in both the gross margin and operating costs.

Analysts had forecast annual operating profits of £29.7m.

NCC was hit by a slowdown in spending across US tech clients, pushing it into the red. However, since then it has targeted various cost efficiencies, including cutting jobs, opened a new delivery and operations centre and shaken up the leadership team in key areas

Mike Maddison, chief executive, said: “We have…continued to transform the business on many fronts. We remain confident in our ability to create sustainable long-term revenues growth, our financial resilience and continue to improve shareholder value.”

As at 1015 BST, shares in NCC were up 4% at 150.02p.

Looking to the current year, NCC said revenues in the first few months – traditionally a quiet period – are expected to be around £100m, generating a gross profit margin of around 38%.

NCC is due to report results for the 12 months to 31 May on 1 August. It is moving its year-end to the autumn, however, so will then post results for the 16 months to 30 September 2024 on 10 December.