NCC GROUP PLC (LSE) reports Financial Results

2025-12-11 · Stocks · QuoteReporter

The stocks discussed are traded on the London Stock Exchange (LSE). On December 11, 2025, NCC Group plc announced its preliminary audited results for the year ending September 30, 2025. The Group, which specializes in cyber security and software escrow services, reported a revenue decline of 2.6% on a constant currency basis, totaling £293.9 million. This decline was primarily attributed to a 4.0% decrease in Cyber Security revenue, which amounted to £227.4 million, while Escode revenue grew by 2.2% to £66.5 million.

In the second half of the fiscal year, both Escode and Cyber Security showed improved performance compared to the first half. Escode’s revenue growth accelerated to 2.5% in H2 2025 compared to H2 2024, up from 1.8% in H1 2025 versus H1 2024. Conversely, Cyber Security’s decline moderated to 1.6% in H2 2025 from a 6.3% drop in H1 2025. Notably, Escode has achieved 12 consecutive quarters of year-on-year revenue growth, and Cyber Security returned to growth in Q4 FY25, providing positive momentum heading into FY26.

The Group’s gross margins improved to 44.5%, up from 43.9% the previous year, driven by operational discipline. Escode’s gross margin increased significantly to 71.4%, while Cyber Security’s margin slightly declined to 36.6%. Adjusted EBITDA for the year was reported at £40.6 million, down from £42.1 million in the prior year, aligning with the Board’s expectations.

NCC Group reported a profit before taxation of £20.6 million, a substantial recovery from a loss of £17.8 million in the previous year. This turnaround was influenced by the sale of the Fox Crypto business, which generated a one-off profit of £11.4 million in H1 2025, alongside a reduction in non-core disposals and lower depreciation and finance costs. The Group successfully eliminated net debt, achieving a net cash position of £13.1 million compared to net debt of £45.3 million a year earlier.

The Board proposed a final dividend of 3.15 pence per ordinary share, maintaining the dividend level from the previous year, which marks 20 consecutive years of dividend payments to shareholders.

Looking ahead, the Group anticipates marginal revenue growth for the year ending September 30, 2026, with both Escode and Cyber Security expected to experience low single-digit growth as the sales pipeline continues to develop. The Board expects FY26 Group Adjusted EBITDA to grow faster than revenue, reflecting confidence in the Group’s medium-term financial goals and ongoing operational improvements.

In summary, NCC Group’s strategic initiatives, including the simplification of its business model and focus on core competencies, have positioned it for a return to profitable growth, despite the challenging macroeconomic environment.

Original Announcement

Title: Preliminary audited results for the year 30/09/25
Date: 2025-12-11
Source: London Stock Exchange