Manchester-based cyber security and escrow firm, NCC Group, has announced a significant uplift in its pre-tax profits, largely attributed to the successful sale of its Fox Crypto business for £65.6 million. The company is now reportedly considering the sale of its Escode business as it looks to sharpen its focus purely on cyber security, a service for which its chief executive states demand has “never been clearer.”
For the six months ending 31 March 2025, NCC Group generated pre-tax profits of £16.6 million, a substantial increase from £8.4 million in the first half of 2024. This growth comes as a direct result of the Fox Crypto disposal, which completed in March and, according to the company, has helped to eliminate group borrowings.
While adjusted EBITDA saw a dip in the period, falling from £25.5 million to £21.1 million, NCC Group stated that this remains in line with its expectations. The Escode business, which provides software escrow and verification services, experienced revenue growth of 1.8 per cent. NCC Group is actively exploring strategic options for this division, including a potential sale, and a company report confirms it is “holding discussions with interested parties.” In contrast, Cyber Security revenue saw a decline of 6.6 per cent on a constant currency basis.
The board anticipates a marginal decline in overall revenue (excluding non-core disposals) for the full year ending 30 September 2025.
Mike Maddison, Chief Executive of NCC Group, commented: “Demand for cyber security services has never been clearer, reflected in strong pipeline growth particularly in solutions related to our investment areas. Our success is driven by a deep penetration testing expertise, a developing global delivery model including our expanding team in the Philippines and strong technology partnerships. We are making progress reflecting the changing market and pivoting to strategic client relationships and projects underpinned by recurring revenue, multidisciplinary capabilities and global delivery.
“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.”
The company appears well-positioned for future growth, with Mr. Maddison concluding: “With a new £120m borrowing facility and the Fox Crypto disposal complete, we are well-positioned to pursue value-enhancing acquisitions in Cyber Security.”
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