UK lags overseas growth at NCC

19th Apr 2011 16:57

Computer security services firm NCC is on course to deliver the anticipated levels of growth and profitability with just over a month of the financial year left. In the first 10 months of the financial year, group revenues were 53% ahead of the same period last year at £57.6m (March 2010: £37.7m.)The group escrow business, which keeps computer code in a safe place in case the supplier goes out of business, saw 8% revenue growth in the period. Group escrow renewals are now forecast to be £15.5m for the year to 31 May 2011, up from £14.6m the year before.Growth was a bit slower in the group's core market, the UK, however, with revenues 6% higher at the end of March than a year earlier, having shown 9% growth at the same stage in 2010. The European and North American escrow businesses saw growth of 10% and 14% respectively.Group escrow termination rates remain below 12% for contracts.The assurance division, which deals with cyber threats, saw revenues virtually double, partly as a result of the acquisition of the US-based security testing business, iSEC Partners. Organic growth stood at 15%.The overall order book in the Assurance Division currently stands at £19.1m, up from £7.2m in March 2010.Atul Patel, who has been acting as interim finance director, has been given the group finance director gig permanently. Broker Peel Hunt is sticking with its "buy" recommendation despite the disappointing share price reaction to the trading update. The broker sees "scope for earnings per share growth to accelerate with recovery in Escrow growth rates, US growth and margin improvements."---jh