1 Material accounting policies continued Revenue recognition continued Detailed policies continued
Timing of satisfaction of performance obligations and significant payment terms
Revenue recognition policies, including determination of transaction price and rationale
Revenue stream
Nature
Cyber Security continued
Managed Services (MS) continued
The set-up fees are based on day rates incurred (defined by an in-house day rate sales pricing matrix). Accordingly, the charge out rates are recognised and allocated to these tasks when performed akin to technical professional day rate services. These rates are considered to be the standalone selling prices and are not discounted or reduced for other services. Post-go-live fees are recognised on delivery of consultancy services over time as the customer obtains incremental benefit from the hours provided. Revenue is recognised on an input basis (day rates) to measure the satisfaction of performance obligations over time. Transaction price is determined by fixed contract rates based upon day rates and number of post-go-live consultancy days. Where one performance obligation, being a combined monitoring cyber and licence service, is identified in relation to the MSP model monitoring service, revenue is recognised over the contract length as the software and monitoring process is an overall service, whereby the Group retains control of the licence and provides a complete monitoring service to the customer. If the customer cancels the contract, the Group will retain control of the licence. Where separate performance obligations are identified for monitoring services and the licence, revenue is recognised over the period the respective services are offered, in line with the underlying contract. The customer benefits from a 24/7 monitoring service whereby benefit is obtained daily and therefore revenue is recognised on straight-line basis as the performance obligation is satisfied over time. The transaction price is determined by fixed contract rates for the services. Revenue in relation to the reseller model monitoring service is recognised over the contract length on a straight-line basis as the performance obligation is satisfied over time. The customer benefits from a 24/7 monitoring service whereby benefit is obtained daily on straight-line basis. Where the Group provides professional services, the revenue recognition (including the determination of transaction prices) is the same as described within the TAS and C&I revenue recognition policy. The transaction price is the fixed retainer fee, which is predetermined within the contract, based on its standalone selling price and spread evenly over the contract duration. Revenue is recognised over time, consistent with the nature of the performance obligation. The entity satisfies its obligation by standing ready to provide DFIR services over the contract term. Accordingly, revenue is recognised on a straight-line basis over the contractual period.
Digital Forensics and Incident Response (DFIR)
DFIR services provide rapid global support during and after cyber attacks, minimising disruption, containing threats, protecting data and enabling swift recovery. DFIR contracts are generally structured on a retainer basis, providing customers with access to DFIR services over a defined contractual period.
The provision of DFIR services on a retainer basis constitutes a series of distinct services that are substantially the same and have the same pattern of transfer to the customer. One performance obligation is identified. The customer will benefit from the services over the period of the contract. Invoices are raised based on an agreed invoicing profile with the customer. Invoices are usually payable within 30 days.
NCC Group plc — Annual report and accounts for the year ended 30 September 2025 117
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