Profits leap at bullish NCC

IT security and assurance group NCC has seen a combination of organic growth and new acquisitions push up turnover and profits.

Pre-tax profits at the Manchester business rose by 25% to £10.8m on sales of £46.8m, up 31%, in the year to May 31.

The business also announced the appointment of former senior partner at PricewaterhouseCoopers David McKeith as a non-executive director. Mr McKeith, chairman of the Halle Orchestra and the Greater Manchester Chamber of Commerce, will join the board later this month.

NCC specialises in protecting IT systems from hackers and provides software insurance services through its escrow division. This allows companies to protect against the collapse of a software developer by placing vital information, such as the software source codes, with a third party like NCC.

At the escrow division revenue grew by 13% while turnover at NCC’s assurance testing business rose by 49%. The acquisition of Sutton-based NGS and Escrow Europe Switzerland during the year helped boost group turnover by 12%.

The group, which now emplys 420 staff, said it would continue to look for suitable acquisitions. Chief executive Rob Cotton said the figures were the group’s best yet.

“We have continued to develop and grow in the face of this adversity and delivered solid and consistent organic growth, complemented by the acquisitions completed over the last few years,” said Mr Cotton.  

“The fundamentals of our business remain strong and attractive; substantial recurring revenues, good cash generation and a focus on the faster growing IT services segments.”

The board has recommended a final dividend of 6.25p, making the total for the year 9.25p, up 32%.