17 January 2013

NCC Group plc (LSE: NCC), the international, independent provider of Escrow and Assurance, has reported its half year results for the six months ended 30 November 2012.

Financial highlights

  • Group revenue increased 13% to £48.1m (£42.4m in 2011)
  • Organic revenue growth was 9%
  • International revenue now 35% (31% in 2011) of total Group revenue
  • Group adjusted operating margin* was 24% (25% in 2011)
  • Reported operating profit was £8.1m (£8.3m in 2011)
  • Group adjusted pre-tax profit* increased 6% to £10.9m (£10.3m in 2011)
  • Adjusted fully diluted earnings per share** increased 4% to 3.67p (3.52p in 2011)
  • Interim dividend** up 15% to 0.98p (0.85p in 2011)
  • Cash conversion ratio was 114% of operating profit (144% in 2011)

Operational highlights

  • Escrow maintained solid revenue growth of 3%
  • Escrow adjusted operating profits* up by 2% to £7.7m (£7.6m in 2011)
  • Assurance achieving strong growth with revenues increasing by 18% (11% organic)
  • Assurance adjusted operating profits* up 16% to £5.5m (£4.7m in 2011)
  • Two acquisitions completed in the US, widening international Assurance capabilities

Outlook

  • Orders and renewals up 6% totalling £46.5m (£43.7m in November 2011) for the current financial year
  • Price increases for UK Escrow implemented in November 2012

* Operating profit is adjusted for amortisation of acquired intangibles, exceptional items and share based payment charges.  Pre-tax profit is adjusted for these items and the unwinding of the discount on the acquisitions' contingent consideration. 

** The interim dividend and adjusted fully diluted earnings per share are calculated after the five for one bonus issue on 18 December 2012.

Rob Cotton, NCC Group Chief Executive, commented:

"We have maintained our strong momentum, with both divisions seeing solid organic growth and benefitting from their leading positions in growing markets.

"Assurance has made particularly strong progress as international information security markets continued to show double digit growth.  Following the two recent acquisitions in New York, we now have the largest multi-national accredited security team in the industry with over 270 testers.

"We remain on course for another year of good growth with an increased contribution from our international operations"

Enquiries:                                                                                                         

NCC Group  (www.nccgroup.com)

+44 (0)161 209 5432

Rob Cotton, Chief Executive

Atul Patel, Group Finance Director

College Hill

Adrian Duffield/Rozi Morris

+44 (0)20 7457 2020

To view the Interim Results for the six months ended 30 November 2012 in full please Click Here

To View th Interim presentation for the six months ended 30 November 2012 please Click Here

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