‘Business is not broken’ says NCC exec chairman

Listed cyber security firm NCC Group has reported a full year pre-tax loss of £55.3m on a group turnover of £244.5m, as its executive chairman insists that the business “is not broken”.

Although group revenues were up 17% for the full year to the end of May, its losses compare to a £9.4m pre-tax profit last year.

Crucial to the overall losses were individually significant charges of £71m, including intangible asset write downs of £62m. Around £48.6m of that was accounted for by good will impairments againts recently acquired firms Fox IT and Accumuli.

Chris Stone took over as executive chairman in April, following the sudden shock departure of longstanding chief executive Rob Cotton.

He told the stock market that although the Manchester-headquartered company holds “leading positions” in markets around the world it needs to change internal business process and how it is organised.

He said: “The past year has been very challenging, both operationally and financially. Business performance has fallen short of expectations, we have outgrown some of our business processes and controls, and we have experienced significant changes to our board.”

Stone added: “Our business is not broken – indeed it has some notable strengths, both financial and operational. We still enjoy significant organic growth in our core markets and have a strong balance sheet.

“Furthermore, in a constantly evolving and complex market, our unique market leading skills and capabilities are keeping us at the forefront of thought leadership. This is recognised by customers, who reward us with high levels of repeat business. If we improve our organisation and how we go to market, we will also see material value creation.”

The company also said its £26.6m turnover web performance and software testing businesses is to be sold.