Appendix 1 – Alternative Performance Measures (APMs) and adjusting items The consolidated Financial Statements include Alternative Performance Measures (APMs) alongside statutory measures. APMs used by the Group are not defined under IFRS and may not be comparable to similarly titled measures reported by other companies. They are not intended to replace or be superior to Generally Accepted Accounting Practice (GAAP) measures. All APMs relate to the current year’s results and, where provided, comparative periods. This presentation is consistent with how management measures financial performance and reports to the Board. It also forms the basis for financial measures used in senior management’s compensation schemes and provides supplementary information to help users understand the Group’s financial performance, position and trends. At all times, the Group aims to ensure that the Annual Report and Accounts gives a fair, balanced and understandable view of the Group’s performance, cash flows and financial position. IAS 1 ‘Presentation of Financial Statements’ requires the separate presentation of items that are material in nature or scale in order to allow the user of the Financial Statements to understand underlying business performance. We believe these APMs provide readers with important additional information on our business, and this information is relevant for use by investors, securities analysts and other interested parties as supplemental measures of future potential performance. However, since statutory measures can differ significantly from the APMs and may be assessed differently by the reader we encourage you to consider these figures together with statutory reporting measures noted. Specifically, we would note that APMs may not be comparable across different companies and that certain profit related APMs may exclude recurring business transactions (e.g. acquisition related costs) that impact financial performance and cash flows. The Group continues to internally manage its performance at an Adjusted operating profit level (before Individually Significant Items), which management believes represents the underlying trading of the business. This information is still disclosed as an APM within this Annual Report. This APM is reconciled to statutory operating profit, together with the consequently Adjusted basic EPS (before Individually Significant Items and the tax effect thereon) to statutory basic EPS. Please see page 54 of the Financial Review section. The Group has the following APMs/non-statutory measures:
Closest equivalent IFRS measure
Adjustments to reconcile to IFRS measure
APM
Definition, purpose and considerations made by the Directors
Income Statement measures:
The Group reports certain geographic regions and service capabilities on a constant currency basis to reflect the underlying performance considering constant foreign exchange rates year on year. This involves retranslating comparative numbers at current period rates for comparability to enable a growth factor to be calculated. Represents operating profit before Individually Significant Items. This measure is to allow the user to understand the Group’s underlying financial performance as measured by management. Individually Significant Items are items that are considered unusual by nature or scale and are of such significance that separate disclosure is relevant to understanding the Group’s financial performance and therefore requires separate presentation in the Financial Statements in order to fairly present the financial performance of the Group. Represents profit or loss for the period before Individually Significant Items and their associated tax effect and adjusted tax items. This measure is to allow the user to calculate the Group’s Adjusted earnings per share. Represents operating profit before the Group’s one adjusting item (ISIs), depreciation and amortisation to assist in the understanding of the Group’s performance. Adjusted EBITDA is disclosed as this is a measure widely used by various stakeholders and used by the Group to measure the cash conversion ratio. Represents basic EPS before Individually Significant Items and their associated tax effect and adjusted tax items. This measure is to allow the user to understand the Group’s underlying financial performance as measured by management, reported to the Board and used as a financial measure in senior management’s compensation schemes.
Retranslation of comparative numbers at current period exchange rates to provide constant currency
Revenue growth rates at actual rates of currency exchange Operating profit or loss
Constant currency revenue growth rates
Adjusted operating profit
Operating profit or loss before Individually Significant Items
Adjusted profit for the period
Profit or loss for the period
Profit or loss for the period before Individually Significant Items and associated tax effects and adjusted tax items
Operating profit or loss
Operating profit or loss before ISIs, depreciation and amortisation, finance costs and taxation
Adjusted earnings before interest, tax, depreciation and amortisation (Adjusted EBITDA)
Adjusted basic EPS
Statutory basic EPS
Statutory basic EPS before Individually Significant Items and their associated tax effect and adjusted tax items
NCC Group plc — Annual report and accounts for the year ended 30 September 2025 157
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