Our investment case
Focused on our growth agenda, we are well positioned for further growth, regardless of any near-term volatility.
Building on the momentum in our global markets, we are confident in our ability to create long-term value for our customers, colleagues and shareholders.
Excellent growth prospects in the cyber market • The cyber challenges faced by organisations will continue to grow for the foreseeable future. They are too nuanced and complicated to be addressed by just installing technology; cyber services firms have a great future: assessing the current threats and resilience posture of organisations, delivering quantifiable improvement in resilience and outsourcing risk through managed services. • The runway for cyber security investment remains significant, moving towards becoming a larger, more recurring, perhaps even mandated, form of spend. Opinium research across more than 1,300 cyber security decision makers in APAC, Europe and North America confirms an expected 10.1% increase in global cyber budgets in 2023 and beyond. Expected 10.1% increase in global cyber security budgets in 2023 Momentum in profitable revenue growth • Weathering attrition and wage inflation, we demonstrate our ability to move rapidly to grow our core, capture new market opportunities and deliver scalable, non-linear growth that allows us to price for the value our customers see from working with us. 16.4% Revenue growth following the acquisition of IPM 42.1% Gross margin £34.7m Operating profit 2.1% Delivered day rate growth
World-leading capability in cyber • With four generations, from baby boomers to Gen Z, working side by side, our global headcount has grown by 24% in the last two years. We have over 700 consultants in our Professional Services business, and nearly 400 in our Managed Services business. • We are a respected hub for diverse cyber talent. Many of our alumni now work for remarkable organisations all around the world. • Our global resourcing means we match skills to demand anywhere in the world – giving us scalability and margin improvements amidst global competition for talent. 47% Global cross charged days increase Trusted by enviable customers globally • The trust and calibre of our customers – from technology giants on the US West Coast, to financial firms and government institutions in Europe – validate our track record in the global cyber market. Seven of our top ten customers in FY21 were also seven of our top ten customers in FY22 Real impact on the future of our industry and the shape of our markets • The Forrester Wave™: European Cybersecurity Consulting Providers, Q3 2021 report celebrates our approach to research as a differentiator in the marketplace. This has included work on the security and privacy of vaccine passports, and the bluetooth keys for modern vehicles like Tesla. • Our strategic threat intelligence helps over 800 customers in 12 industry sectors, particularly finance, industrials and technology, to stay ahead of evolving threats like ransomware. 30% of our threat detection is based on our own research. • We are represented on the Open Source Security Foundation Governing Board, a member of the UK Department for Digital, Culture, Media and Sport Secure Connected Places External Advisory Group and part of a £11.6m consortium to offer security advice on a blueprint for secure Quantum Data Centres. • As a result of our evidence-based engagement, regulators across three continents looking after more than 2,000 financial institutions now recognise software, technology and data escrow agreements as a viable means of managing third party technology risk.
Stand-out cash generative ability £54.8m Net cash generated from operating activities
101.9% Cash conversion 1
NCC’s research capability has made demonstrable improvements in security beyond its direct work on client projects. ”
1 S ee Note 3 for an explanation of Alternative Performance Measures (APMs) and adjusting items. Further information is also contained within the Chief Financial Officer’s Review and the Glossary of terms on pages 56 to 63 and 203 and 204 respectively.
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NCC Group plc — Annual report and accounts for the year ended 31 May 2022
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