NCC forecasts cyber security revenue of £235 million and appoints Guy Ellis as CEO
Key Facts
NCC Group appointed Guy Ellis as chief executive with immediate effect, succeeding Mike Maddison, as it forecast adjusted EBITDA above market expectations for the year ended 30 September 2026. The company said in a trading update that revenue for the financial year would be in line with market expectations. The announcement combines a leadership change with an update on the financial performance of the cyber security business, now the group’s focus following the sale of Escode. Ellis helped shape and deliver the company’s strategy, according to the chairman. The group will announce its audited results for the financial year on 10 December 2026.
NCC expects its cyber security business to generate revenue of about £235 million in FY26, compared with £227.4 million in the previous financial year, an increase of 3.7% on a constant currency basis, excluding non-core activities. This represents growth in the company’s core business following the group’s refocus. In its half-year results, the company said cyber security revenue excluding Fox Crypto was £118.4 million, up 5.9% on a constant currency basis compared with the corresponding period. Managed services revenue was also £40.0 million in the first half, up 4.7% year on year on a constant currency basis and 2.8% compared with the previous second half. These interim figures provide context for the annual revenue forecast announced by the group.
On profitability, the company expects a record gross margin of 38.4% for cyber security, an increase of 1.8 percentage points. It also expects adjusted EBITDA for the business to reach £16.3 million, equivalent to about 6.9% of its revenue. This comes as the group guided for adjusted group EBITDA to exceed market expectations, while overall revenue remains in line with them. NCC reported adjusted group EBITDA, excluding Fox Crypto, of £23.5 million in the first half, compared with £18.4 million in the corresponding period, an increase of 27.7%. The company did not attribute the earnings outperformance to its cost and efficiency programme; it said the planned programme was progressing as expected.
The group expects net cash of about £53 million at 30 September 2026. It said 35% of its £15 million share buyback programme had been completed during the financial year. This follows NCC’s completion of the sale of Escode in May 2026, a transaction that the chairman said, alongside strengthening the balance sheet and a significant return of capital to shareholders, had established a “strong platform for future growth”. The orderly separation from Escode is covered by a transitional services agreement with the buyer that runs until 28 May 2027. In its half-year results, the company said the sale of the business was completed on 29 May 2026 and that NCC had become a specialist cyber security group.
Ellis said strategic priorities include deepening customer relationships and expanding managed services capabilities and cyber expertise. The company is targeting organic growth, recurring revenue and adjusted EBITDA margins in the mid-teens. The group said its financial guidance for the year ending 30 September 2027 was unchanged. It will provide more detail on its growth strategy and opportunities alongside the announcement of its audited FY26 results on 10 December 2026. The results date will therefore be the next milestone at which management presents the annual performance and details of its strategic direction.