NCC Group (LSE:NCC), the cyber security services provider, reported Group revenue excluding Fox Crypto up 5.0% at constant currency to £151.3m and Group Adjusted EBITDA up 27.7% to £23.5m, with adjusted basic EPS rising 200% to 4.5p and Cyber gross margin at a record 38.4%.
The sale of Escode completed on 29 May for net cash proceeds of £262.8m and, together with prior disposals of Fox-IT DetACT and Fox-IT Crypto, delivers total enterprise value from the three disposals of c.£349m while NCC will provide transitional services to Escode for 12 months for £4.9m.
All capabilities grew in the half with Cyber (including Central and Head Office costs) adjusted EBITDA up 130.6% to £8.3m and Escode adjusted EBITDA up 2.7% to £15.2m, Managed Services revenue rose 4.7% to £40m and Consulting plus Managed Services now represent 55% of cyber revenue.
"The second half has also started well, and we remain confident in the structural growth drivers of the cyber security market and in our positioning as a focused, scalable business," said Mike Maddison, Chief Executive Officer.
The board set mid-term targets of mid-single-digit Cyber revenue growth in FY27 and FY28, c.£25m of gross margin and overhead savings versus FY25 by FY28 including £7m in FY26, and mid-teens Cyber adjusted EBITDA margins by the end of FY28.
The gain on disposal of Escode will be finalised and recognised in the Group's year end results.
