Bumper profits at NCC

IT specialist NCC Group today shrugged off the tough economic times to reveal a bumper hike in profits as it ploughs on with its ambitious growth strategy.

It was also good news for shareholders after the group said it would hike its interim dividend payment by 33% to 3p.

In the six months to November 30, pre-tax profits at the Manchester-based group rose 13% to £5.2m from £4.6m last time. Revenue was up 27% to £20.8m.

The group said that its consultancy and assurance businesses have seen excellent growth as the public demands security to cover information held in both the public and private sectors.

Its £10m acquisition in November of NGSS resulted in the group becoming the biggest ethical security testing team in Europe.

NCC said that while it is not immune to the current economic environment, its strategy over the last few years has been to grow organically and by acquisition of complementary products and services positioned away from discretionary IT services expenditure.

As a result, NCC has established itself as a market leader which has meant that new client wins and projects have insulated it during demanding times.

Chief executive Rob Cotton, pictured right, said: “Our focus on developing a number of complementary international information and security assurance businesses, by acquisition and organic growth, continues to show excellent returns.

“A combination of our insulation from the worst features of the economic situation, our strong recurring revenues, cash generation and concentration on the fast growing information security markets gives us considerable confidence in our business, as demonstrated by our 33% increase in dividend. We remain on course to deliver another strong set of figures for this financial year.”