NCC insists cost savings are working and ahead of schedule

Mike Maddison

Listed cyber security and software escrow business NCC will tell shareholders at its Annual General Meeting today (30 November 2023) that trading is in line with management expectations in the first half and management expectations for the full year remain unchanged.

The cyber business and managed services revenue has “continued to grow strongly” whilst revenue in Technical Assurance has “remained stable since the reductions seen in H2 FY23.”

Escode – our software resilience (Escrow) business has delivered another two consecutive quarters of underlying year on year revenue growth driven by increased verification revenues and contract pricing increases.

In October 2023 activist investor Kelso took a small stake in NCC and said the different divisions were “operationally distinct and have no synergies as part of the same group” – effectively advocating a break up.

The AGM will be told however that delivery of £5m in cost efficiencies for next year “are being realised ahead of schedule”.

NCC has appointed Carolyn Hieken, as chief commercial officer, based in the US. She has over 20 years of technology and cyber security sales leadership experience and completes the formation of the executive committee.

The company has also established a partnership with TransUnion to provide cyber protection to insurance customers at scale globally.

A Manila office is now operational with an official opening in January 2024.

Mike Maddison, chief executive, csaid: “I’m delighted to have completed the formation of the new executive leadership – a team which has deep experience operating within the cyber security industry. We are continuing to make good progress on all aspects of our Next Chapter strategy, and our trading and outlook are in line with the expectations outlined in September 2023.”

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