Cyber security revenues push higher at NCC

20th Jun 2024 10:35

(Sharecast News) - NCC Group said on Thursday that cyber security revenues had returned to growth, helping annual operating profits come in ahead of expectations.

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.