‘Hacktivism’ provides opportunities for NCC
ACQUISITIONS helped to drive revenues at Manchester-based IT security business NCC Group up by 49% to £71m in the year to May 31.
The company also said that its adjusted pre-tax profits grew strongly by 21% to £17.3m, although its unadjusted profit figure for the year actually dropped by 1.5% to £12.8m.
Growth was strongest in the firm’s assurance testing division which grew by 87% during the year to £46.1m (2010, £24.6m). Although this was partly fuelled by acquisitions, the firm said that it had continued to achieve good organic growth – across all divisions, sales grew organically by around 12%.
Chief executive Rob Cotton said the company had continued a track record since coming onto the market seven years ago of delivering growth. “NCC Group has seen a compound annual growth rate of 33% and 21% for revenues and adjusted operating profits respectively.
He added that recent acquisitions in the US were “best in class” and provided the firm the opportunity of becoming a market leader within its particular niche areas.
“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,” he said.
He said the firm continued to be cash-generative, although acquisition costs meant that it finished the year with higher net debt of £20.5m (£11.9m). The firm is proposing a final dividend of 13p per share, up from 10.75p last year.
Cotton also said the firm had made a strong start to its new financial year, with escrow sales up to £17m from £15.2m last year, and assurance sales of £17.8m (£14m).
“The outlook for NCC Group remains very good and the board remains confident in its ability to deliver further sustainable growth.”
