Viability statement
In April 2025, the Group refinanced its borrowing arrangements by entering into a new four year £120m multi-currency revolving credit facility, replacing the previous facility due to expire in December 2026. The new facility, which expires in April 2029, provides additional liquidity headroom and has been factored into the Group’s viability assessment. Additionally, the Directors have modelled the impact of severe, yet plausible, scenarios associated with the Group’s principal viability risks, which could have the most significant potential impact on viability over the three year period, as outlined in the table below. These sensitivities have been assessed against the Group’s projected cash flow position, available banking facilities, and compliance with financial covenants throughout the viability period. Under these scenarios, the Group has assessed and concluded that sufficient headroom exists to support its operations and meet its liabilities as they fall due. Further details on the Group’s financing arrangements can be found in Note 1 of the Financial Statements. The applied sensitivities demonstrate sufficient levels of headroom, indicating that no mitigating actions are necessary under the severe but plausible scenarios modelled by management. Nevertheless, should additional headroom be needed, available measures within the Directors’ control include reducing planned capital expenditure, adjusting headcount, freezing pay and recruitment, and suspending dividend payments to shareholders. As outlined on page 32, the Board has undertaken a robust assessment of the Company’s principal risks, resulting in an overall reduction in the number of identified risks. This reassessment included a review of the Group’s principal risks that are also considered viability risks, and any changes identified during the year are clearly highlighted on pages 32 to 37. Conclusions Based on the severe but plausible scenarios modelled (inclusive of the planned disposal of Escode), the Directors have a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the three year period of assessment. The Directors have considered this assumption as part of their viability assessment and believe it to be reasonable based on the Group’s financial position.
In line with Provision 31 of the 2018 UK Corporate Governance Code, this Viability Statement outlines the Directors’ assessment of the Group’s ability to continue in operation and meet its liabilities as they fall due over the designated assessment period (factoring in the Group’s continuing operations), drawing attention to any qualifications or assumptions, as necessary. This evaluation considers our current financial position, outlook and principal risks and uncertainties, as well as the critical judgements and estimates underpinning the Financial Statements. The Directors’ assessment is grounded in the Group’s business model and strategic plan, which are reviewed and approved annually by the Board with a focus on a sustainable growth strategy derived from two distinct businesses, increasing shareholder value, and enhancing our service offering. For further details, please see the Strategic Report on pages 8 and 9. The Group’s strategic priorities, detailed on pages 12 and 13 of the Strategic Report, provide a foundation for this outlook. Additionally, the effective management of principal risks and uncertainties, as outlined on pages 29 to 37, underscores those factors that could theoretically pose a threat to the Group’s operational or financial resilience, particularly those carrying the viability risk (VR) designation. The assessment period The Directors have assessed the viability of the Group over a three year period ending in September 2028. This timeframe aligns with the Group’s strategic planning horizon and reflects a practical planning period, considering the pace of industry change and evolving customer demands. Assessment of viability The viability of the Group has been assessed based on its current financial position, available banking facilities, and the Board-approved FY26 budget and three year strategic plan (factoring in the Group’s continuing operations). The Group’s base case budget for FY26 incorporates recent growth trends across geographical regions and operating segments, as well as relevant growth opportunities driven by existing offerings. Management has also performed base case modelling inclusive of the potential disposal of its Escode business (incorporating any associated impact on the Group’s banking facilities and expected net cash position). This assessment also accounts for current macro-economic conditions where applicable. Additionally, the Group remains in the early stages of reviewing a number of strategic options for its Cyber business, however no decision has been made on which option will be pursued as of 11 December 2025. No material issues impacting the Group’s viability assessment as of 11 December 2025.
NCC Group plc — Annual report and accounts for the year ended 30 September 2025 38
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