Notes to the Financial Statements continued for the year ended 30 September 2025
3 Segmental information continued Revenues from the Escode business, classified as a discontinued operation for the year ended 30 September 2025, have been analysed by service line:
2025 £m 43.0 23.5
2024 £m
Discontinued operations
Escrow contracts Verification services
57.2 30.2
Total Escode revenue
66.5
87.4
4 Individually Significant Items (ISIs) The Group separately identifies items as Individually Significant Items. Each of these is considered by the Directors to be sufficiently unusual in terms of nature or scale so as not to form part of the underlying performance of the business. They are therefore separately identified and excluded from adjusted results (as explained in Appendix 1).
2025 £m
2024 £m
Reference
3.9 3.8 1.8
Fundamental reorganisation costs
a b c d e
9.4 0.1
Costs associated with strategic review of Escode business Costs associated with strategic review of Cyber business
—
— — —
Profit on disposal of DetACT/DDI
(1.5)
North America Cyber Security goodwill impairment
31.9
Transaction costs of Fox Crypto
f
1.6
Total ISIs (excluding profit on disposal of Fox Crypto)
9.5
41.5
(11.4)
Profit on disposal of Fox Crypto
f
—
Total ISIs
(1.9)
41.5
(a) Fundamental reorganisation costs In order to implement the next chapter of the Group’s strategy to enhance future growth, certain strategic actions are required including reshaping the Group’s global delivery and operational model. This reshaping is considered a fundamental reorganisation and restructuring programme that will span reporting periods, and the total project size and nature are considered in totality. The programme commencement was accelerated following the Group experiencing specific market conditions that validated the rationale of the next chapter of the Group’s strategy. The programme included three planned phases (with phase 3 remaining in progress as at 30 September 2025) as follows: • Phase 1 (March–April 2023) – initial reduction in global delivery and operational headcount, and c.7% reduction of the Group’s global headcount. • Phase 2 (June–September 2023) – a further reduction in the global delivery, operational and corporate functions’ headcount prior to opening our offshore operations and delivery centre in Manila. • Phase 3 (October 2023–December 2025) – the Group’s intention remains for phase 3 of the reorganisation to complete by December 2025; however, this will continue to be monitored as the transformation strategy progresses as we ensure the operating model is market aligned, and delivery is focused to support the underlying Cyber Security business strategy. Costs of £3.9m (2024: £9.4m) and a cash outflow of £3.8m (2024: £6.0m) have been incurred in relation to the implementation of this reorganisation. These costs primarily consist of severance payments, associated taxes, and professional fees for advisory and legal services. The reorganisation costs include £0.3m (2024: £3.4m) related to property rationalisation. This comprises £0.1m (2024: £3.5m) in property closure impairment charges and £nil (2024: £0.4m) in fixed asset impairment charges, both relating to non-current assets. Additionally, £nil (2024: £0.7m) relates to non-rental provision costs. Offsetting these costs are £0.2m (2024: £0.8m) in non-current asset impairment reversals and £nil (2024: £0.4m) in provision reversals. These costs and reversals reflect the impact of a reduction in the Group’s global headcount, leading to decreased office utilisation and a re-evaluation of the global property portfolio. It is expected that costs will continue to be incurred into FY26. The Group will need to exercise judgement in assessing whether restructuring items should be classified as ISIs. This assessment will consider the nature of the item, its cause, the scale of its impact on reported performance, the resulting benefits, and alignment with the original reorganisation programme’s principles and plans. (b) Costs associated with strategic review of Escode business In February 2023, the Group announced the commencement of a strategic review of its Escode business and other core and non-core assets. The review of the Escode business was subsequently stopped in June 2023, which was reinforced within the Group’s 2024 Annual Report and Accounts. However, during the year ended 30 September 2025, the Group confirmed that it was exploring a number of options for its Escode business, including a potential sale. This was subsequently reinforced by the Group’s trading update issued on 21 October 2025. Professional fees of £3.8m (2024: £0.1m) have been incurred during the year, primarily relating to advisory support services. These costs meet the Group’s policy for inclusion as ISIs, having been incurred as part of the wider restructuring and reorganisation activities ongoing within the Group. Costs of £3.8m (2024: £0.1m) and a cash outflow of £1.8m (2024: £0.1m) have been incurred. (c) Costs associated with strategic review of Cyber business On 28 April 2025, the Group confirmed that it was investigating a number of options for its Escode business including a potential sale. On 16 July 2025 the Company confirmed that it was in the early stages of commencing a review of all strategic options for its Cyber business in the event the sale of the Escode business is agreed (the "Cyber Review"). This was subsequently reinforced by the Group’s trading update issued on 21 October 2025. This process remains at a very early stage, and as at 30 September 2025, no decisions had been made regarding which option will be pursued.
NCC Group plc — Annual report and accounts for the year ended 30 September 2025 126
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