NCC Group PLC on Monday said it expects a marked second half revenue increase and added that it has named a cybersecurity head at accounting firm EY as its new chief executive.
The Manchester-based cybersecurity firm expects revenue in the second half of the year ending May 31 to be ‘substantially higher’ than a year prior. It will also be a demonstrable improvement on its first half fortunes, NCC added. In the six months to November 30, the company’s first half, revenue amounted to £150.1 million.
NCC said the growth was ‘driven by the acquisition of IPM and accelerating Assurance revenue growth through the second half of financial 2022.’
In June 2021, NCC completed the deal to acquire the Intellectual Property Management unit of Iron Mountain for $220 million.
Annual revenue and its adjusted earnings before interest and tax are to be ‘in line with management expectations’.
‘The board expects that the increased momentum in revenues will continue into the forthcoming financial year as a result of increased volumes and day rates,’ NCC added.
In its Assurance unit, revenue is to grow 15% yearly, quickening from an 8.8% climb in the first half. Double-digit growth for the full-year is expected. Assurance revenue in financial 2021 amounted to £233.9 million.
The Software Resilience unit, excluding IPM, ‘is expected to return to revenue growth’ in the second half.
On its CEO change, NCC said Mike Maddison joins the board at the start of August. Current CEO Adam Palser, who is stepping down after more than four and a half years in the role, will remain as CEO until mid-June and will be available ‘to support an orderly handover’.
In the six weeks after Palser steps down as CEO and prior to Maddison’s arrival, Non-Executive Chair Chris Stone will be executive chair.
Maddision is currently head of EY’s cyber security, privacy, and trusted technology practice in the Europe, Middle East & Africa region. He has held that role since 2017.
‘During that time Mike has successfully delivered strong growth across the 97 countries in the region and reinforced EY’s position as a leading cyber security adviser. Previously he led PwC’s risk services practice across the Middle East and before that was head of Deloitte’s cyber security consultancy in EMEA for ten years where he also drove significant growth,’ NCC added.
NCC shares were 0.7% higher at 186.20 pence each in London on Monday morning.
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