Ncc Group Plc · LSE:NCC
Ncc — H1 FY2025 Earnings Presentation
24 slides from Ncc's earnings presentation, Jun 19, 2025
Slide 1: Interim Results
Interim Results Unaudited results to 31 March 2025 19 June 2025 Together we're creating a more secure digital future NCC Group classification: Public
Slide 2: Overview
Overview Mike Maddison Chief Executive Officer NCC Group plc classification: Public
Slide 3: A recap on NCC Group
A recap on NCC Group Shaping cyber security and software resilience solutions for both public and private sector clients globally Two distinct Cyber Security Escode Protecting companies and governments A global market leader, and trusted third party, in businesses against an evolving spectrum of cyb
Slide 4: Key Escode highlights
Key Escode highlights • Ten consecutive quarters of revenue growth • Sustainably improved gross margin • Investigating options for Escode and holding discussions with interested parties, which if concluded would enable return of capital to shareholders and further investment in the Cyber Security bu
Slide 5: Key Cyber highlights
Key Cyber highlights • NCC’s historical high-volume business in transactional engagements pressured by a challenging investment environment for clients and resulting change in buyer behaviour • Strong marquee client wins in Managed Services, competitive renewals environment • Strategic investment ar
Slide 6: Cyber Security
Cyber Security A market changing at pace in a challenging macro environment 1. Escalating threat 2. Core business risk agenda 3. Increasing regulatory momentum 4. Shortage of talent 5. Changing buyer habits: CISO to C-Suite 6 nccgroupplc.com nccgroup.com
Slide 7: We've made great progress on strategic change
We’ve made great progress on strategic change December 2022 Today • High borrowings • Increasing roster of strategic clients • Complex business processes • Significantly simplified global processes • Geographical silos and structure • US tech client concentration • Efficient cost structure • Largely
Slide 8: Why we win: we now provide full lifecycle cyber services
Why we win: we now provide full lifecycle cyber services • A prestigious global client base Full Life • Broad and deep cyber capabilities and Cycle multiple client engagement points Cyber Services • Ability to deliver competitively globally • Strong brand credibility in our core and growth markets 8
Slide 9: The proof points are clear our strategy is beginning to pivot the business
The proof points are clear our strategy is beginning to pivot the business • 82% of contracts sold in FY25 exceed £50k • In FY22 we had no strategic global partnerships – compared to 72% in FY22 now we have Microsoft, Dragos, Splunk, Cycognito and Google (paid research partner): • 57% of contracts s
Slide 10: Our areas of focus
Our areas of focus Sales Simplifying the Delivery efficiency transformation business by through the exploiting the application of global model technology 10 nccgroup.com
Slide 11: NCC is at a pivotal point in its development
NCC is at a pivotal point in its development and • A focused, strategic cyber security partner to global organisations well on the way to becoming… • With an advisory team that has unrivalled knowledge and experience of cyber threats • Supported by a global technical platform • With a culture of ope
Slide 12: Financial Review
Financial Review Guy Ellis Chief Financial Officer NCC Group plc classification: Public
Slide 13: Financial Summary
Financial Summary Revenue Gross margin % Adjusted EBITDA 0.4% pts 4.9% decline increase YoY 15.7% decline Operating profit Profit Before Tax Net cash Reduced to net cash 70.9% increase 97.6% increase position £0.3m 13 NCC Group plc classification: Public nccgroupplc.com nccgroup.com
Slide 14: Group income statement
Group income statement Six-month unaudited to 31 March 2025 Actual rates H1 2024 H1 2025 % change • Revenue declined by 4.9% at constant currency (£m) (£m) Revenue 166.8 156.8 (6.0%) Gross Profit 71.4 67.8 (5.0%) • Gross margin conversion improved with Escode Gross margin % 42.8% 43.2% +0.4% pts cos
Slide 15: FY25 Financial framework
FY25 Financial framework Sustainable Improved Efficiency Capital deployment revenue growth Gross Margin for growth supporting growth Deliver underlying growth Maintain utilisation % Simplify operating model Strong cash conversion in Cyber Security to generate efficiencies Smart pricing and margin En
Slide 16: Escode revenue and adjusted EBITDA
Escode revenue and adjusted EBITDA Six-month unaudited to 31 March 2025 Revenue by region H1 2025 regional YoY Revenue by service line H1 2025 service line YoY constant currency growth constant currency growth Constant currency Constant currency UK +6.4% Escrow contracts +0.9% North America (1.8%) V
Slide 17: Cyber security revenue and adjusted EBITDA
Cyber security revenue and adjusted EBITDA Six-month unaudited to 31 March 2025 Revenue by region H1 2025 regional YoY Trajectory constant currency growth Constant currency UK & APAC (5.2%) • H1 2025 revenue compared to H2 2024 YoY decreased North America (13.1%) overall by 4.6% 69.0 Europe (2.6%) •
Slide 18: Cyber security revenue by capability
Cyber security revenue by capability Six-month unaudited to 31 March 2025 Revenue by capability H1 2025 capabilities YoY Trajectory constant currency growth Constant currency TAS (12.6%) • High recurring MS now accounts for 30.5% of C&I (2.7%) all Cyber revenue MS 3.0% • TAS and C&I seeing improving
Slide 19: Net debt (exc. lease liabilities) now cleared
Net debt (exc. lease liabilities) now cleared Supporting strategic options for capital allocation and value enhancing M&A 40.0 59.8 20.0 (2.6) (2.3) (9.8) 0.3 0.0 (5.8) (2.6) Net debt (£m) (20.0) 20.4 (7.0) (40.0) (4.5) (45.3) (60.0) (80.0) Operating cash Lease payments Finance costs Dividend Other
Slide 20: Financial highlights
Financial highlights Cyber revenue Gross margin Adjusted EBITDA Strategic investments delivering, flywheel benefit, Better decisions, global Simplifying process increased ARR delivery, leveraging scale and reducing cost Escode Net cash Dividends Momentum building Provides strategic flexibility Maint
Slide 21: Outlook
Outlook Mike Maddison Chief Executive Officer NCC Group plc classification: Public
Slide 22: Continuing to strengthen our business
Continuing to strengthen our business • FY25 Adjusted EBITDA remains in line with previous guidance • FY25 Group Revenues (excluding non- core disposals) to decline marginally, with single digit growth for Escode • Current Cyber pipeline is building, and we would expect to return to revenue growth i
Slide 23: Questions
Questions NCC Group plc classification: Public
Slide 24: Disclaimer
Disclaimer This presentation, including a hard copy of these slides, the talks given by the presenters, the information communicated during any delivery of the presentation and any question and answer session and any document or material distributed at or in connection with the presentation (togethe