Shares of Manchester-based global cyber security firm NCC Group plc fell about 11% on Thursday after it said its first-half revenue fell 6% to £156.8 million for the six months to March 31, 2025, and that revenue for the year ended September 30, 2025, is expected to decline marginally.
NCC said first-half profit before tax grew 97.6% to £16.6 million “as a result of the one-off profit (£11.3m in H1 2025) from the sale of our Fox Crypto business for a total consideration of £65.6m completed in March 2025.”
The company confirmed it is investigating options for its Escode business, including a potential sale, and is now holding discussions with interested parties.
NCC said it experienced a decline in its “high-volume, lower value testing and compliance engagements as clients reacted to macroeconomic uncertainties in the autumn and spring.”
It said its cyber security division is pivoting towards strategic client relationships.
The firm has declared an unchanged interim dividend of 1.50p per ordinary share, marking 20 consecutive years of dividend payments for shareholders.
In its outlook, NCC said: “The board anticipates that revenue (excluding non-core disposals) for the year ended 30 September 2025 is expected to decline marginally, with Escode experiencing single digit revenue growth offset by a decline of c.5% in cyber security (excluding non-core disposals) as that division pivots towards strategic client relationships.
“Current cyber security pipeline is building and we expect to return to revenue growth in FY26.
“If a potential Escode transaction were to conclude it would enable a significant return of capital to shareholders and further investment in the business.”
NCC Group CEO Mike Maddison said: “I want to thank colleagues for their focus and efforts in transforming NCC Group into two distinct businesses.
“Further significant progress has been made on our strategy: we’ve completed the complex sale of our non-core Fox Crypto business and finalised the evolution of our Cyber Security business into four globally consistent service lines.
“Demand for cyber security services has never been clearer, reflected in strong pipeline growth particularly in solutions related to our investment areas.
“Our success is driven by a deep penetration testing expertise, a developing global delivery model including our expanding team in the Philippines and strong technology partnerships.
“We are making progress reflecting the changing market and pivoting to strategic client relationships and projects underpinned by recurring revenue, multidisciplinary capabilities and global delivery.
“Escode has now delivered ten consecutive quarters of year-on-year revenue growth. As announced on 28 April 2025, we are exploring strategic options for Escode, including a potential sale.
“If concluded, this would enable NCC to become a pure-play Cyber Security provider and return significant capital to shareholders and make further investment in our Cyber Security business.
“With a new £120m borrowing facility and the Fox Crypto disposal complete, we are well-positioned to pursue value-enhancing acquisitions in Cyber Security.”