NCC Group
NCC · Main Market · Technology · mcap £225m · 151.6p
NCC Group sells cyber security services such as testing, consulting and managed services to businesses and governments. Until May 2026 it also ran Escode, a software escrow business that holds code in trust for customers.
The case for
- Net cash was about £230m after the Escode sale, before the £185m return. The Cyber business is meant to be debt-free. 11 Jun 2026 29 May 2026
- Cyber adjusted EBITDA roughly doubled in H1 2026 to £8.3m, and Cyber gross margin rose to 38.4%. Cyber revenue has grown for two quarters. 11 Jun 2026 3 Mar 2026
- Management targets mid-teens Cyber EBITDA margins and c.£25m of cost savings by FY28. 11 Jun 2026
- Disposals were done at high multiples (Fox Crypto 16.5x EBITDA, Escode 9x). Tender and buyback have cut the share count sharply. 28 Mar 2025 21 Jan 2026 2 Sep 2026
The case against
- Group revenue shrank from FY23 to FY25, and Cyber revenue fell about 4% in FY25. The return to growth is recent and rests on a forecast. 19 Jun 2025 11 Dec 2025 21 Oct 2025
- The disposals leave a smaller business. Escode, a steadily growing unit, has gone, and its earnings go with it. 21 Jan 2026 30 Apr 2026
- Management has repeatedly cited longer sales cycles. The final dividend was cut to 1.50p for the 16-month period before being restored to 3.15p. 10 Dec 2024 11 Dec 2025
- The mid-teens margin target is ambitious. It depends on cost savings and on Cyber revenue growth through FY28. 11 Jun 2026
Both sides use only facts from the company's announcements · not investment advice
Company filings. Not investment advice.