NCC Group has swung back to profit despite a dip in revenues, as it pushes ahead with plans to simplify the business and focus on core cybersecurity services.
For the year to 30th September 2025, group revenue fell 7.2% from £329.2 million to £305.4m, with cybersecurity revenues down to £227.4m and Escode edging up to £66.5m.
Despite the revenue decline, the Manchester-based company delivered a strong profit recovery.
Adjusted EBITDA for the year was £43.7m (2024: £49.7m), but profit before tax rebounded to £20.6m from a £17.8m loss the previous year, reflecting tighter cost control, lower finance and depreciation charges, as well as an £11.4m gain on the sale of its Fox-IT crypto business.
That disposal, completed in March 2025 for £65.6m, has moved the group from net debt of £45.3m to net cash of £13.1m and has since refinanced into a new four-year £120m revolving credit facility with an additional £50m extension.
NCC is also running a formal review of options for its Escode software escrow business, including a potential sale, which could pave the way for the business to become a pure-play cyber security services group and consider a further return of capital alongside its share buy-back programme.
A separate process is under way to review options for the cybersecurity division itself, while management continues to push higher-value, recurring revenue and global delivery, including expanding its Manila hub.
“FY25 has been a year of disciplined execution and strategic progress,” said NCC Group CEO Mike Maddison.
“We have significantly simplified the group, eliminated net debt and strengthened our balance sheet through the successful sale of Fox-IT Crypto. These actions give us the flexibility to invest in growth, focused on our core capabilities.
“Our Cyber Security business continues to evolve towards higher-value, recurring revenue streams, supported by global delivery and strategic partnerships.
“Our expanding Manila hub and the application of technology are enabling us to scale our operations, deliver growth and serve clients more efficiently across our business.
“Escode continues to deliver consistent growth and profitability, and as announced, we are reviewing strategic options for the business, including a potential sale.
“If a sale is concluded, this would allow NCC Group to become solely a pure-play Cyber Security service company and consider a significant return of capital to shareholders.
“While the macro environment remains challenging, demand for cyber security, resilience and regulatory assurance continues to grow. We are confident in our strategy to deliver sustainable growth and long-term success.
“I want to thank our NCC Group colleagues for their continued commitment and focus during this period. We are now seeing the impact of that ongoing collective effort.”
The company floated over two decades ago in 2004 with a share price of around 30p.
It has since grown significantly and is now a member of the FTSE 250 Index with a share price of 137.6p and a £435m market cap.
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