NCC Group plc Annual Report 2021

Independent auditor’s report to the members of NCC Group plc

1 Our opinion is unmodified We have audited the financial statements of NCC Group plc (“the Company”) for the year ended 31 May 2021 which comprise the consolidated income statement, consolidated statement of comprehensive income, consolidated balance sheet, consolidated cash flow statement, consolidated statement of changes in equity, company balance sheet, company cash flow statement, company statement of changes in equity, and the related notes, including the accounting policies in note 1. In our opinion: • the financial statements give a true and fair view of the state of the Group’s and of the parent Company’s affairs as at 31 May 2021 and of the Group’s profit for the year then ended; • the Group financial statements have been properly prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006; • the parent Company financial statements have been properly prepared in accordance with international accounting standards in conformity with the requirements of, and as applied in accordance with, the provisions of, the Companies Act 2006; and • the financial statements have been prepared in accordance with the requirements of the Companies Act 2006 and, as regards the Group financial statements, Article 4 of the IAS Regulation to the extent applicable. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities are described below. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion. Our audit opinion is consistent with our report to the audit committee.

We were first appointed as auditor by the directors on 1 November 2013. The period of total uninterrupted engagement is for the eight financial years ended 31 May 2021. We have fulfilled our ethical responsibilities under, and we remain independent of the Group in accordance with, UK ethical requirements including the FRC Ethical Standard as applied to listed public interest entities. No non-audit services prohibited by that standard were provided.

Overview Materiality : Group financial statements as a whole

£1.2m (2020: £0.8m) 4.5% (2020: 5.0%) of normalised Group profit before tax 87% (2020: 93%) of the total profit and losses that make up Group profit before tax

Coverage

Key audit matters

vs 2020

Recurring risks:

Recoverability of goodwill in EU Assurance cash generating unit (‘CGU’) Fox IT long term fixed price

contract accounting Assurance revenue recognition in the cut off period

Recoverability of parent company investments and intercompany receivables Accounting treatment of costs related to cloud-based software arrangements Recognition of US research and development (‘R&D’) tax credits

Event driven risks:

New

New

NCC Group plc — Annual report and accounts for the year ended 31 May 2021

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