NCC Group pivots on cyber security amid rising demand
FTSE 250 tech firm NCC Group said it was changing the strategic direction of its cyber security division after revenue took a hit in the first half of the financial year.
NCC’s revenue from cyber security tumbled nearly eight per cent to £123.5m for the first half of the year, down from £133.9m for the same period in 2024.
The firm said this came amid a “decline in our high-volume, lower value testing and compliance engagements as clients reacted to macroeconomic uncertainties in the Autumn and Spring.”
The division said it would shift towards “strategic higher value engagements” which included managed services, identity and access management, operational technology security, and advanced testing.
“These areas have longer sales and onboarding cycles that are supported by our scalable global delivery capabilities and strategic technology partnerships,” the company said.
NCC said it the need for strong cyber security “has never been clearer”. This follows a flurry of attacks on retail giants in recent months, with grocer Marks and Spencer facing the most notable hit.
The attack on the retailer is expected to leave a £300m hit on profit.
NCC’s profit jumped after crypto sale
NCC’s pre-tax profit significantly jumped for the first-half, namely due to a one-off bump from the sale of its Fox Crypto business. The division was sold in March 2025 for £65.6m, helping profit for the period nearly double to £16.6m.
Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at £21.5m, which was down from £25.5m the year prior.
The group said it continues to weigh the sale of its Escode division, which specialises in software escrow and verification services.
A pack of private equity firms, including Montagu Private Equity and Bridgepoint, were reported to be interested in bidding for Escode earlier this year.
The division’s revenue crept up over one per cent for the first-half, reaching £33.3m.
Mike Maddison, NCC’s chief executive, said: “Escode has now delivered ten consecutive quarters of year-on-year revenue growth. As announced on 28 April 2025, we are exploring strategic options for Escode, including a potential sale.
“If concluded, this would enable NCC to become a pure-play Cyber Security provider and return significant capital to shareholders and make further investment in our Cyber Security business.”