‘Cyber arms race’ to help NCC smash profit targets

IT security provider NCC Group expects surging demand from businesses looking to protect themselves from cyber attacks to deliver higher-than-expected full-year profits.

The Manchester-based company, an independent provider of Escrow and Assurance, said in a trading update that pre-tax profits for the year to May 31 2012 will come in between £21m and £21.5m “well ahead” of the market consensus of £19.6m.

NCC said revenue achieved is over 27% ahead of last year’s first half performance.

The company said its Assurance division had been the star performer, and had benefited from: “the increase in market awareness about information security issues and the need for enterprises to understand, plan and implement operational strategies to counter and handle cyber-attacks.”

This has led to significant growth in revenues and margins in the division, ahead of the board’s expectations.

Chief executive Rob Cotton, pictured, said: “”Now that we have closed the first six months of the current financial year, it is clear that the rate of growth in the information security units within Assurance, especially iSEC and NGS, is faster than expected as companies invest to protect themselves from cyber-attack.

“Our US and UK-based teams offer the best in class testing solutions, supported by our creative and innovative working environments. In spite of the wider economic environment, the international information security market will continue to grow extremely rapidly. 

“We expect to be able to capitalise on what is fast becoming the most important area of investment any company can make as they try to stay ahead in the cyber arms race.”

The group expects to report half year results for the six months to the end of  November on January 19.