NCC Group experiences pretax loss in H1 2024 due to decrease in revenue. Despite this, company remains confident in its future outlook and highlights the success of its software escrow business, Escode. Stable dividend of 1.50 pence announced.
Troy D. Hanson
January 25, 2024
By Christian Moess Laursen
NCC Group, a leading cybersecurity company based in the U.K., announced a pretax loss of £2.4 million ($3.1 million) for the first half of fiscal year 2024. The decrease in revenue from its technical assurance services was a contributing factor. However, the company reassured that its revenue and profitability remained on track with expectations.
In the six-month period ending on November 30, NCC Group experienced a significant shift from a pretax profit of £10.3 million in the previous year to a pretax loss. The company's revenue also decreased by 6.7% at constant currencies, totaling £159.2 million. This decline was primarily driven by a decrease in revenue in the technical assurance services division. Despite this setback, NCC highlighted that its overall revenue performance matched expectations.
NCC Group expressed confidence in the second half of the fiscal year, particularly regarding the revenue prospects of its technical assurance services. As the largest part of its cyber business, the company anticipates an improvement in this area.
On a positive note, NCC's software escrow business called Escode witnessed a revenue growth of 6.2%. This growth can be attributed to increased verification revenue as well as contracted price increases.
Despite the challenges faced during the first half of fiscal year 2024, NCC Group announced a stable dividend of 1.50 pence.