Chief Financial Officer’s review continued
Financial summary continued Assurance continued Assurance revenue analysed by type of service/product line:
% change at actual rates
% change at constant currency 1
2022 £m
2021 £m
189.0
Global Professional Services (GPS) Global Managed Services (GMS) Product sales (own and third party)
172.2
9.8% 11.0% 4.3% 6.7%
58.6 10.9
56.2
5.5 98.2% 94.6%
Total Assurance revenue
258.5
233.9 10.5% 12.1%
Global Professional Services grew by 11.0% to £189.0m on a constant currency basis 1 (9.8% at actual rates) with delivered day rates increasing by 2.1%. Global Managed Services (GMS) grew by 6.7% to £58.6m on a constant currency basis 1 (4.3% at actual rates). Within GMS, the Group has received strong sales orders since the year end providing confidence in our XDR growth strategy. Assurance gross profit and margin are analysed as follows:
2022 £m
2022 % margin
2021 £m
2021 % margin
% pts change
46.4 40.5% 29.8 31.7% 16.1 32.3%
UK and APAC North America
41.0 39.9% 0.6% pts 27.4 33.1% (1.4% pts) 16.0 33.0% (0.7% pts)
Europe
Assurance gross profit and % margin
92.3 35.7%
84.4 36.1% (0.4% pts)
Gross margin declined slightly by 0.4% pts, with our UK and APAC performance margins increasing by 0.6% pts, whereas North America and Europe gross margins declined by 1.4% pts and 0.7% pts due to investment in technical capacity to support future growth. Software Resilience The Software Resilience division accounts for 17.9% of Group revenues (2021: 13.5%) and 30.4% of Group gross profit (2021: 23.7%). This increase was a result of the IPM acquisition. Software Resilience revenue analysis – by originating country:
% change at actual rates
% change at constant
2022 £m 25.4 26.8
2021 £m
currency 1
UK
25.2
0.8% 0.8%
North America
7.3 267.1% 277.5%
4.1
Europe
4.1
–
2.5%
Total Software Resilience revenue
56.3
36.6 53.8% 55.1%
In Software Resilience, we experienced an overall revenue increase of 55.1% at constant currency (53.8% at actual rates). This increase was a result of the IPM acquisition. Software Resilience revenue analysis – by originating country excluding the IPM acquisition:
% change at actual rates
% change at constant
2022 £m
2021 £m
currency 1
24.5
UK
25.2 (2.8%)
(2.8%)
7.5 4.1
North America
7.3 4.1
2.7% 5.6%
Europe
–
2.5%
Software Resilience revenue excluding IPM acquisition
36.1
36.6 (1.4%)
(0.6%)
Excluding the effect of the IPM acquisition, revenue declined by 0.6% on a constancy currency basis 1 (1.4% at actual rates). As noted at our half year, revenue declined by 3.3% compared to the same comparator period on a constant currency basis 1 (4.9% at actual rates) and we expected a return to growth in the second half as sales capability was back at full strength and improved marketing automation resulted in improved activity levels and pipeline. It has therefore been pleasing to see H2 constant currency 1 growth of 2.2% (actual rates: 2.2%) mainly due to North America and Europe. On a local currency basis (US $), IPM revenue and profitability was 3% and 4% respectively behind our internal budget targets, with the focus now on finalising the IPM integration, increasing revenue and profitability. 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.
60
NCC Group plc — Annual report and accounts for the year ended 31 May 2022
Made with FlippingBook Online newsletter maker