Ncc Group Plc · LSE:NCC
Ncc — Investor Presentation (March 2009)
18 slides from Ncc's investor presentation, Mar 11, 2009
Slide 1: NCC Group plc
NCC Group plc Analysts Visit – Online document Manchester 11 March 2009
Slide 2: Analysts Day - Agenda
Analysts Day - Agenda Interim highlights Sector & customer concentration – the facts Group revenue split by sector to date Assurance division – renewable revenues Assurance division – margins 2009/10/11 Escrow Europe – the Dutch view Appendix 2
Slide 3: Interim highlights
Interim highlights Recession resilient performance – but nobody is impervious Group revenue up 27% to £20.8m Operating profits up 17% to £5.5m – Group Escrow Solutions up 19% to £5.5m – Assurance Testing up 25% to £1.0m – Consultancy up 71% to £0.2m Group employs 420 FTE in eight locations w
Slide 4: Sector & customer concentrations
Sector & customer concentrations The Group has never been reliant on one customer or sector Sector exposure has been consistent over the previous three years 18% of Group revenues derived from banks & insurance – Escrow 24% - same for last three years – Assurance 17% - maximum has been was 20%
Slide 5: Group revenue split by sector to date
Group revenue split by sector to date 13% 18% Banks & Insurance Fixed & Mobile Telecommunications 6% Softw are & Computer Services Central Govt 3% Local Govt 9% Education Housing 12% Support Services General Retailers 13% Healthcare Equipment & Services 5% Travel & Leisure Other* 5% 5% 3% 8% *No sec
Slide 6: Assurance division – renewable revenues
Assurance division – renewable revenues Division revenues for six months to November 2008 £7.7m Revenues derived from: – NGS – Specialist security testing & forensics – contributing H2 2008/09 – Secure Test – security testing – Site Confidence load & monitoring – 24/7 Assured – constant security
Slide 7: Assurance division - margins
Assurance division - margins Initial objective achieved - market leader in ethical security testing – largest accredited team - only reported measure Consensus for full year suggest c.£18.3m revenue for 2008/09 Group strategy based on organic growth with complementary bolt on acquisitions Ea
Slide 8: Escrow Europe – the Dutch view
Escrow Europe – the Dutch view Based in Amsterdam, Holland & Munich, Germany – Integrated into the Group – acquired January 2008 – NCC Group & Escrow Europe German businesses merged Dutch escrow market is well established – over 20 years trading Foothold into Europe to gain & develop share of
Slide 9: Escrow Europe – the Dutch view
Escrow Europe – the Dutch view Adapted sales process is combined face to face & telesales – Face to face vitally important for new customers – Telesales works once customer relationship established – Customers need to feel they have special rates – Price points are different on renewals in many ca
Slide 10: Appendix
Appendix A Nee: 100 es ee
Slide 11: Group Trading Division & Brands
NCC Group plc Group Trading Division & Brands Escrow Solutions Assurance Testing Consultancy Escrow UK Secure Test Information Security Escrow Europe Site Confidence Information Technology Escrow US NGSS 24/7 Assured 11
Slide 12: Assurance division – renewable income
Assurance division – renewable income Y/E May Y/E May Y/E May Average 2006 2007 2008 Total number of customers 720 887 1,024 - Number of customers renewing testing on prior year 333 424 497 - Renewals by number of customers on prior year 59% 59% 56% 58% Renewals by value of spend on prior year 82% 8
Slide 13: Percentage revenue split by sector
Percentage revenue split by sector Escrow Solutions Assurance Consultancy Group Sector 06/07 07/08 08/09 06/07 07/08 08/09 06/07 07/08 08/09 06/07 07/08 08/09 (6m) (6m) (6m) (6m) Banks & Insurance 24% 24% 24% 20% 19% 17% 2% 2% 3% 19% 19% 18% Telecoms 15% 15% 17% 1% 2% 2% 0% 0% 2% 10% 8% 9% Software
Slide 14: Track record since float in July 2004
Track record since float in July 2004 Revenue (£m) Operating profit (£m) Fully diluted adjusted EPS (p) 40 12 25 10 30 20 8 £m £m 20 6 p 15 4 10 10 2 5 0 0 0 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 Dividend (p) Share Price (pence) Full year 8 130 Interim 120 6 110
Slide 15: Group revenues
Group revenues 30 November 2008 2007 % % Organic £m £m Growth Growth Revenue Escrow UK 7.9 7.8 1% 1% Escrow Europe 1.2 0.1 - - Escrow US 0.8 0.5 61% 61% Total Escrow Solutions 9.9 8.4 17% 6% Assurance Testing 7.7 5.8 32% 21% Consultancy 3.2 2.1 51% 51% Total Revenue 20.8 16.4 27% 18% UK 16.9 13.7 23
Slide 16: Group operating profits
Group operating profits 30 November 2008 2007 % % Organic £m £m Growth Growth Contribution Escrow UK 4.9 4.5 10% 10% Escrow Europe 0.4 0.0 - - Escrow US 0.2 0.1 25% 25% Total Escrow solutions 5.5 4.6 19% 12% Assurance Testing 1.0 0.8 25% 16% Consultancy 0.2 0.1 71% 71% Corporate (1.2) (0.9) 45% 45%
Slide 17: Group financial performance
Group financial performance 30 November 2008 2007 % £m £m Change Adjusted operating profit 5.5 4.7 17% Exceptional item – move to full list - (0.5) - Amortisation (0.5) (0.3) 87% Interest (0.3) (0.2) 30% Pre Tax Profits 4.7 3.7 27% Adjusted Pre Tax Profits 5.2 4.6 13% Adjusted full diluted EPS (p) 1
Slide 18: Balance sheet
Balance sheet Cash conversion improved to 119% (118% in 2007) of operating profits Group £11.9m net debt (£0.2m net debt in 2007) – Debt free by November 2010 if no further acquisitions Low exposure to bad debt Committed multi option credit facility of £15m in place – New banking terms exten