Notes to the Financial Statements continued for the year ended 30 September 2025
16 Discontinued operations and assets and liabilities held for sale Current year – Escode
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. 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. The Group initiated an active programme to locate a buyer for Escode during the year. On this basis, as at 30 September 2025, the sale of Escode was considered highly probable and therefore the associated assets and liabilities were reclassified as held for sale as at 30 September 2025. As the conditions for classification as “held for sale” were met, and given that Escode represents a separate major line of business within the Group, it is presented as a discontinued operation. The financial performance and cash flow information relating to discontinued operations for the year ended 30 September 2025, including comparative figures, is presented below.
Year ended 30 September 2025 £m
16 month period ended 30 September 2024 £m
Discontinued operations
66.5
Revenue (Note 3)
87.4
(19.0)
Cost of sales
(26.7)
Gross profit
47.5
60.7
Administrative expenses Individually Significant Items Depreciation and amortisation Other administrative expenses
—
(0.1) (7.7)
(6.0) (9.8)
(14.7)
(15.8)
Total administrative expenses
(22.5)
Operating profit
31.7
38.2
(0.1)
Finance costs
(0.1)
Profit before taxation Tax expense (Note 8)
31.6
38.1
(5.4)
(3.4)
Profit for the year/period from discontinued operations Exchange differences on translation of discontinued operations
26.2
34.7
(0.1)
(10.2)
Other comprehensive income from discontinued operations
26.1
24.5
39.6
Net cash inflow from operating activities Net cash outflow from investing activities Net cash outflow from financing activities
37.0
(0.3)
(1.6)
(37.4)
(37.0)
Net increase/(decrease) in cash generated by the discontinued operations
1.9
(1.6)
NCC Group plc — Annual report and accounts for the year ended 30 September 2025 138
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