NCC Group (LON: NCC), the cyber security business, has named chief financial officer Guy Ellis as its new chief executive and said full-year adjusted earnings will come in ahead of market expectations. The shares were down 1.3% at 172.2p in early trading today, as of 8.53 am, after rising about 11% over the previous two sessions.
Yesterday’s close of 174.4p was the highest in a year, following gains of 5.1% on Friday and 5.7% yesterday. The shares touched 178.8p yesterday, a 52-week high, and today’s quote is 3.7% below it. They are up 23.7% this year and well clear of the 52-week low of 107.2p.
The two-day rise predates today’s session. Today’s announcement also covered trading for the year ended the 30th of September. Ellis, who has been finance chief since June 2023, succeeds Mike Maddison with immediate effect. Andy Beaver, the Group Financial Director, becomes interim chief financial officer.
NCC expects revenue in line with market expectations and adjusted EBITDA, its earnings before interest, tax, depreciation and amortisation, ahead of them. Cyber revenue, excluding disposed businesses, was about £235m against £227.4m a year earlier, up 3.7% at constant currency. Cyber gross margin hit a record 38.4%, up 1.8 percentage points, and Cyber adjusted EBITDA was £16.3m, about 6.9% of revenue.
Net cash was about £53m as of 30 September, with 35% of a £15m buyback executed. Including eight months of the Escode business, sold in May, group revenue is about £280.0m and adjusted EBITDA £36.0m. FY27 expectations are unchanged.
Chair Chris Stone said the board chose Ellis after an internal and external process, and credited the outgoing team with the change in the business.
Over the past four and a half years, Mike and the Executive team have transformed NCC into a focused and strategically positioned cyber security business.
Chris Stone, NCC Group
Ellis said the shift to a pure-play cyber business is complete. He aims to deepen client relationships, expand managed services and grow organically, with a plan to reach mid-teen EBITDA margins.
NCC reports audited results on the 10th of December, when it will provide more detail on its growth strategy.