Strong revenue growth drive profits up 21% and earnings up 25%
07 Jul 2011
Seven year CAGR for operating profit 21% and dividend 32%
NCC Group plc (LSE: NCC, "NCC Group" or "the Group"), the international, independent provider of Escrow and Assurance, has reported its preliminary results for the year to 31 May 2011.
Financial highlights
- Group revenue up 49% to GBP71.0m (2010: GBP47.6m)
- Group adjusted pre-tax profits* up 21% to GBP17.3m (2010: GBP14.3m)
- Adjusted fully diluted earnings per share* up 25% to 36.7p (2010: 29.4p)
- Total dividend up 21% to 13.0p (2010: 10.75p) - CAGR of 32% since 2004
- Cash conversion ratio was 133% of operating profits (2010: 141%)
Operational highlights
- Group Escrow maintained strong revenue growth of 8%
o Escrow UK saw solid organic revenue growth of 6%
o Increased US presence through acquisition of complementary business in Atlanta - Assurance Division now multinational leading independent information security business
o Organic growth of 17% and operating profit up 70% to GBP6.5m (2010: GBP3.8m).
o Acquisition in US significantly enhanced position and widened global capabilities
o Forensics and operational responses becoming major areas of opportunity
Outlook for 2011/2012:
- Group Escrow renewals forecast to increase by 12% to GBP17.0m (2010: GBP15.2m)
- Group Escrow verification order book GBP2.1m (2010: GBP2.2m)
- Assurance Testing order book and renewals up 23% to GBP22.6m (2010: GBP18.3m)
* Operating profit is adjusted for amortisation of acquired intangibles and exceptional items. Pre-tax profit is adjusted for this item and the unwinding of the discount on the acquisitions' contingent consideration.
Rob Cotton, Group Chief Executive, commented:
"The Group has performed well and flourished during the year - reporting an excellent financial performance. The combination of strong reliable organic growth, carefully acquired and integrated acquisitions and notably cash generation has enabled us to deliver a CAGR of 33% for revenues and 21% of operating profits over the last seven years.
"Both of our business units are continuing to see predictable long term expansion with strongly recurring revenues throughout. The two US acquisitions have transformed our capabilities and provide a sound platform for sustained international growth.
"Within the Assurance division, the exponential growth of all types of activity on the internet, has created an open unregulated and unmanaged environment, ideally suited for a wide range of illegal activities including state-sponsored targeted attacks and the rise of "hacktivism". These are providing considerable opportunities for us to develop this division further into an international leader in information security."
To view the Preliminary Results for the year ended 31st May 2011 in full please click here.
Enquiries:
NCC Group (www.nccgroup.com)
0161 209 5200
Rob Cotton, Chief Executive
Atul Patel, Finance Director
College Hill
020 7457 2020
Adrian Duffield / Rozi Morris
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