Continued strong organic and acquisitive growth drive profits up 25%
20 Jan 2011
NCC Group plc (LSE: NCC, “NCC Group” or “the Group”), the international, independent provider of Escrow and Assurance, has reported its results for the six months to 30 November 2010.
Highlights
- Group revenue from continuing operations up 49% to £33.0m (£22.2m in 2009)
- Group adjusted operating profits from continuing operations* increased by 27% to £7.7m (£6.1m in 2009)
o Group Escrow operating profits up by 12% to £6.7m
o Assurance operating profits* up by 83% to £2.4m - Group adjusted pre-tax profits from continuing operations** up by 26% to £7.4m (£5.9m in 2009)
- Adjusted diluted earnings per share from continuing operations*** up by 25% to 15.2p (12.2p in 2009)
- Interim dividend up by 19% to 4.15p (3.50p in 2009)
- Ratio of cash inflow from operating activities before interest and tax to operating profit increased to 141% (133% in 2009)
- Acquisition of iSEC, the Californian based ethical security testing company, for up to $24.4m on 14 October 2010
- Strong growth in the contract and verification revenues across Group Escrow
- Assurance Division has seen strong growth as information security issues continue to become increasingly critical to all businesses
- Orders and renewals up 33% totalling £41.0m (£30.9m in November 2009) for the current financial year
* Operating profits from continuing operations plus amortisation of intangible assets and exceptional items.
** Profit before tax from continuing operations plus amortisation of intangible assets, exceptional items and unwinding of the discount on acquisitions.
*** See reconciliation in Financial review below.
Rob Cotton, Group Chief Executive, commented:
“The first half of the year has seen strong growth and development within both divisions, with a notable performance by the Escrow business - growing revenue by 10% and operating profitability faster than in 2009, up 12%.
“Our Assurance business is benefitting both from rapid market growth in the information security sector and the addition of a number of complementary businesses, which have materially increased our international reach and operational capabilities.
“Information security and the cyber crime ‘arms race’ have now become the issue for the IT industry, as clearly demonstrated by recent high profile events and highlighted by the OECD in its report earlier this week. With 135 testers, forensic and security experts and researchers worldwide, we are confident of maintaining our leading position in this very dynamic market.
“The year is progressing strongly, and with our focus on non discretionary spend, we are well positioned to maintain our rate for growth; already this financial year we have secured orders and renewals totalling £41.0m, up 33%.”
To view the Interim Results for the six months ended 30 November 2010 in full please click here.
Enquiries:
NCC Group (www.nccgroup.com)
0161 209 5200
Rob Cotton, Chief Executive
John Gittins, Finance Director
College Hill
Adrian Duffield / Rozi Morris
020 7457 2020
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