Shares of NCC Group, the Manchester-based global cyber security firm, fell about 10% on Thursday after it warned it has experienced a recent “lengthening of the sales cycle, which is leading to delays in buying decisions, work commencement and therefore revenue recognition, particularly in North America and the UK.”

NCC said its revenue in the six months to November 30, 2022, rose 17.7% to £176.6 million and profit before tax rose 22.6% to £10.3 million.

However, NCC said that given customer behaviour since the beginning of its second half, 2023 revenues are now expected to increase year-on-year by only single-digits.

“As a result of the current market conditions, we are experiencing a reduction in our utilisation rates and attrition,” said NCC.

“We are therefore accelerating the implementation of our strategy and reshaping the business, with a proposed reduction in headcount in the near term

“Due to the macro-economic backdrop, and the savings arising from the actions to reshape the business, we expect FY23 Adjusted operating profit to be around £52m, before the investment we are making this year to implement the next chapter of our strategy.”

NCC is planning a 7% reduction of its global headcount, mostly in the UK and North America.

NCC Group CEO Mike Maddison said: “The group has delivered solid, double-digit growth in the first half of the year, building on our technical expertise and track record working with the world’s leading brands and Government organisations. 

“Despite the very evident global economic headwinds we are confident that the next chapter of our strategy will deliver a business positioned to fully capitalise on increasingly complex cyber challenges, and one that will be resilient in dynamic markets.”