Shares of Manchester global cyber security and software escrow firm NCC Group plc fell as much as 18% after it said it has “seen a lengthening of sales cycles, in particular across the cyber business” and expects to deliver “flat to low single digit revenue growth” in the current financial year to September 30, 2025.

The update came as NCC reported its results for the 16 months to September 30, 2024, following a change to the group’s financial year end.

“The group has a strong pipeline of opportunities, and management is pleased with the foundations put in place through strategic actions taken in the period,” said NCC.

“In line with the wider market, the group has recently seen a lengthening of sales cycles, in particular across the cyber business, compared to H2 to May 2024 and also the four-month period to September 2024.

“In spite of this, management expects to deliver profitable growth across both businesses in the current financial year to 30 September 2025, with flat to low single digit revenue growth and modest Group Adjusted EBITDA gains (after adjustment for the non-core disposals and share-based payments) and remains confident in delivering the group’s medium-term financial goals.”

NCC Group CEO Mike Maddison said: “We have made great progress over the past 18 months, transforming the business by focusing on client needs while building the group’s resilience.

“Our more focused Cyber Security business returned to growth in the second half to May 2024, with improved sources of recurring revenue with Managed Services performing well, and our Escode business building a track record of growth.

“We are pleased to see this strategic progress coming through in improved gross margin and Adjusted EBITDA – a key priority for the Group.

“We continue to focus on our client-centric strategy and notwithstanding macroeconomic factors outside of our control, we expect to grow in the current financial year and remain confident in delivering our medium-term financial goals.

“An ever-increasing threat landscape, rapidly evolving technology such as AI, digital adoption and a rise in regulation across the world creates multiple growth drivers for both our Escode and Cyber businesses, and we continue to enhance our capabilities and improve our routes to market to ensure we are the go-to choice for organisations and governments as they build and enhance their cyber resilience.”