Chair’s statement
Strong platform for further growth
Introduction I am pleased to report another year of strong progress in which NCC Group capitalised on accelerating demand throughout the year to achieve record revenue and profits. NCC Group’s vision is to be the leading cyber resilience provider globally, and we have put in place the fundamentals that enable our Group to achieve this vision. We have enhanced our delivery capabilities, attracted brilliant people at scale and embedded an inclusive culture across the Group, all enabling the strong growth delivered in the year. Assurance’s successful year was driven by our performance in the US and UK, supported by Software Resilience’s return to growth in the second half, as compared to the prior year second half. The integration of IPM is substantially complete and the business has already made a positive contribution to the Software Resilience division’s performance, with a healthy pipeline heading into the new financial year. With our strong platform established and continued momentum in the market our newly appointed CEO Mike Maddison has joined the Group at an exciting time. Mike brings a tremendous amount of energy, experience and industry insight to the CEO role and we look forward to seeing the Group deliver the next phase of growth under his leadership. The cyber security market is only travelling in one direction, and we believe we are well positioned to capture the opportunities that this creates, making the world safer and more secure. See Q&A with Mike Maddison on page 12 Business performance Overall, following the acquisition of IPM, the Group delivered revenue growth of 16.4% (2021: 2.6%), growth in Adjusted EBITDA 1 of 12.8% to £59.2m (2021: £52.5m) and Adjusted operating profit 1 growth of 22.7% to £48.1m (2021: £39.2m). On a statutory basis, operating profit increased by 100.6% to £34.7m (2021: £17.3m) and profit before taxation increased 109.5% to £31.0m (2021: £14.8m), giving rise to a statutory EPS of 7.4p (2021: 3.6p) and Adjusted basic EPS 1 of 10.8p (2021: 9.5p) respectively. At 31 May 2022, our cash conversion 1 was 101.9% (2021: 88.2%). Net debt 1 amounted to £85.0m (2021: net cash of £48.9m). Net debt (excluding lease liabilities) 1 amounted to £52.4m (2021: net cash £83.3m). Total borrowings (including lease liabilities) offset by cash and cash equivalents amounted to £85.0m (2021: net cash £48.9m). Our business performance can be found in more detail on pages 8 to 11 Strategy and sustainable business model Our strategy, mission and vision remain unchanged, and as we continue to successfully execute our strategy, our global delivery model, strong customer relationships and insight-led development of our resilience propositions create the strong platform for the next phase of NCC Group’s growth. Further details on our strategy and business model are provided on pages 28 to 35 and 18 and 19 respectively
The cyber security market is only travelling in one direction, and we believe we are well positioned to capture the opportunities that this creates, making the world safer and more secure. ”
Chris Stone Non-Executive Chair
2021/22 key activities • Focusing on double-digit sustainable sales growth • Managing the successful IPM integration • Improving the diversity around our Board table and in the executive team and completing successful searches for a new CEO and independent Non-Executive Directors • Continuing focus on relevant stakeholder engagement • Evolving our sustainability agenda 2022/23 priorities • Continued revenue growth through strong customer relationships, evolving resilience propositions and increased delivered day rates • Finalisation of the full operational review of the combined Software Resilience division to create additional Group contribution from FY24 • Return to face-to-face and hybrid alongside virtual ways of working
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