Summary
NCC Group reported first-half revenue of £151.3 million, a 5.0% increase compared with the same period last year. Adjusted EBITDA for the six months rose 27.7% to £23.5 million, while pretax profit reached £10.7 million.
Performance drivers
The company attributed group performance to growth in its Cyber Security division, with the UK and Asia-Pacific regions singled out for particularly strong contributions. Management said higher gross margins in Cyber Security reflected operational improvements and a strategic shift toward higher-margin services.
Additionally, NCC Group reported a larger contribution from multi-capability contracts with bigger clients and an increased proportion of revenue coming from Consulting and Managed Services.
Capital return and corporate actions
Following the sale of its Escode business, NCC Group plans to return capital to shareholders via a £170 million tender offer together with a separate £15 million share buyback, totaling £185 million in proposed returns.
Outlook
For fiscal year 2026, the company expects Cyber Security revenue to grow in the mid to low single-digit range. Management forecasts group adjusted EBITDA will expand at a faster pace than revenue, and it expects Cyber adjusted EBITDA margin to be around 5.5% to 7.5% in fiscal 2026.
Looking further ahead, NCC Group is targeting mid-single-digit Cyber Security revenue growth in fiscal years 2027 and 2028, and aims to reach mid-teens adjusted EBITDA margin by the end of fiscal year 2028.
Implications for markets and sectors
The results and guidance highlight revenue and margin dynamics within cybersecurity services, which influence investor assessments of managed services, consulting-focused IT providers, and firms exposed to corporate contract scale. The planned capital return will also be relevant to shareholders evaluating near-term cash distributions.