NCC Group PLC, a global cyber security and software escrow business, released its preliminary audited results for the year ended September 30, 2025. Heres a summary of the key points
**Financial Performance**
* **Revenue** Group revenue declined by 2.6% to £293.9 million, with Escode (software escrow) growing by 2.2% to £66.5 million and Cyber Security declining by 4.0% to £227.4 million.
* **Gross Margins** Improved to 44.5% from 43.9%, driven by operational discipline and margin improvements in Escode.
* **Adjusted EBITDA** Declined to £40.6 million from £42.1 million in 2024, in line with Board expectations.
* **Profit Before Taxation** Increased significantly to £20.6 million from a loss of £17.8 million in 2024, due to various factors including a one-off profit from the sale of Fox Crypto.
**Strategic Progress**
* **Simplification and Focus** The sale of Fox Crypto in March 2025 simplified the business and strengthened the balance sheet, eliminating net debt.
* **Escode Review** The company is exploring strategic options for its Escode business, including a potential sale, which could lead to a significant return of capital to shareholders.
* **Cyber Security Transformation** NCC Group is repositioning its Cyber Security business towards higher-value, recurring revenue streams, supported by global delivery and strategic partnerships.
**Operational Highlights**
* **Managed Services Growth** Managed Services revenue increased as a proportion of total Cyber Security revenue, contributing to margin improvement.
* **Global Delivery** Expansion of the Manila hub and application of technology are enabling the company to scale operations and serve clients more efficiently.
* **Strategic Partnerships** Recognition from key partners like Splunk and Microsoft underscores NCC Groups reputation as a trusted advisor and innovator.
**Outlook**
* **FY26 Expectations** Revenue is expected to grow marginally, with Escode and Cyber Security experiencing low single-digit growth. Adjusted EBITDA is expected to grow faster than revenue.
* **Medium-Term Goals** The Board remains confident in delivering the Groups medium-term financial goals through improved operational discipline and transformation of the cyber security engine.
**Key Metrics**
* **Net Cash** £13.1 million as of September 30, 2025, compared to net debt of £45.3 million in 2024.
* **Dividend** An unchanged final dividend of 3.15p per share, marking 20 consecutive years of dividend payments.
**Conclusion**
NCC Groups FY25 results reflect a year of strategic progress and transformation, with a focus on simplifying the business, improving profitability, and positioning for future growth in the cyber security market. The companys efforts to enhance its Cyber Security offerings, expand global delivery capabilities, and explore strategic options for Escode demonstrate its commitment to long-term success and value creation for shareholders.
| Metric | 2025 (£m) | 2024 (£m) | Change |
|---|---|---|---|
| Revenue | 305.4 | 329.2 | (7.2%) |
| Gross Profit | 135.9 | 142.9 | (4.9%) |
| Adjusted EBITDA | 43.7 | 49.7 | (12.1%) |
| Operating Profit/(Loss) | 25.6 | (11.5) | 322.6% |
| Profit Before Taxation | 20.6 | (17.8) | 215.7% |
| Net Cash/(Debt) excluding lease liabilities | 13.1 | (45.3) | 128.9% |
| Final Dividend (pence) | 3.15 | 1.50 | - |
Debt Comparison
| Metric | 2025 (£m) | 2024 (£m) | Change |
|---|---|---|---|
| Net Debt (including lease liabilities) | (6.4) | (72.9) | 91.2% |
| Net Debt (excluding lease liabilities) | 13.1 | (45.3) | 128.9% |