Financial review
Delivering on our financial framework
• Globalised technical resource footprint – from a global delivery perspective the Group continues to invest in its Manila office and delivery resourcing is planned and tracked on a single system. Efficiency for growth • Simplify operating model to generate efficiencies – finance and IT processes globalised and centralised around hubs in Manchester and Manila. We continue to monitor our transformation journey as we ensure the operating model is market aligned, and delivery is focused to support the underlying Cyber Security business strategy. • Drive towards consistent profit conversion in every market – improvement in North American GM% by 6.3% pts to 28.4% year on year, despite a revenue decline of 12.9% at constant currency, in part as a result of increased delivery from Manila and cost control. • Eliminate stranded costs resulting from non-core disposals – the Fox-IT Crypto disposal completed on 28 March 2025. In October 2025, the simplified Fox-IT Cyber Security operations further separated from the Fox-IT Crypto business by moving into its own offices, following the opening of the new Rijswijk office (the “Den”). We continue to review Group wide for any stranded costs from all non-core disposals (including the potential disposal of Escode). Capital deployment supporting growth • Strong cash conversion – FY25 cash conversion of 91.3%, reflecting an improvement from H1 2025 cash conversion of 62.3%, with H2 2025 cash conversion being 119.4%. • Ensure appropriate liquidity and debt facilities – net cash effectively managed at 30 September 2025 to £13.1m, with non-core disposal of Fox-IT Crypto generating £65.6m gross cash consideration. Agreed a new four year £120m multi-currency revolving credit facility in April 2025. • Maintaining dividend – final FY25 dividend maintained at 3.15p, as the Board prioritises investment in the strategy. • Expected commencement of initial share buy-back programme in December 2025/January 2026. • Accretive acquisition opportunities – continue to scan the market for accretive cyber opportunities with a clear strategic and operational fit. Overview of financial performance Throughout this Financial Review, references are made to a number of reporting periods. Any references to the year ended 30 September 2025 or the 16 month period ended 30 September 2024 relate to audited figures (unless stated otherwise). References to the year ended 30 September 2024, the six months (“H1”) to 31 March 2025 (and comparative six months to 31 March 2024), and the six months (“H2”) to 30 September 2025 (and comparative six months to 30 September 2024) relate to unaudited figures.
Guy Ellis Chief Financial Officer
Highlights – financial framework As we assess our performance against the FY25 financial framework published in December 2024, it is encouraging to see that we have continued to deliver throughout the year against most of the framework. The key points to note are as follows: Sustainable revenue growth • Delivering underlying growth in Cyber Security (excluding non-core disposals) – 2025 Cyber Security revenue declined compared to the year ended 30 September 2024 on both constant currency 1 (-4.0%) and at actual rates (-4.9%). However, H2 2025 demonstrated positive momentum versus H1 2025, delivering growth of +3.0%. • Increase Managed Services revenue as a proportion of total Cyber Security (excluding Crypto and DetACT) – 2025 MS revenue proportion increased by +2.2%pts at constant currency (actual rates: +2.5%pts), compared to the year ended 30 September 2024. • Maintaining momentum in Escode – achieved 12 consecutive quarters of revenue growth (on a constant currency basis) and increased year on year by +2.2% on a constant currency basis (+0.8% actual rates). Improved gross margin • Improved utilisation – the Group’s average utilisation rate for the year across TAS and C&I (all locations) amounts to 70.4%, with the Manila team average increasing as more activity is onboarded into its delivery model. • Smart pricing and margin investment decision making – Kantata resource reporting tool now implemented globally and regular reporting of profitability by engagement and client has been implemented with further benefits to be realised.
NCC Group plc — Annual report and accounts for the year ended 30 September 2025 40
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