NCC Group (LSE:NCC) said trading for the first half of 2026 met expectations, with revenue rising around 5% on a constant currency basis to £151.3 million. The company also reported improved gross margins across both its Cyber and Escode divisions.
Adjusted EBITDA is expected to increase by nearly 28% to £23.5 million, driven largely by a strong rebound in profitability within the Cyber segment. Net debt stood at approximately £10.2 million ahead of the anticipated sale of the Escode business.
Escode sale and capital returns remain on track
The planned disposal of Escode is progressing as expected, subject to final regulatory approvals, and is set to generate net proceeds of about £262.4 million. In addition, NCC Group recently completed a £40 million share buyback program.
The company also confirmed it is continuing to evaluate strategic options for its Cyber division under the UK Takeover Code, while reiterating that full-year adjusted EBITDA should align with board expectations as operational improvements and transformation initiatives continue.
Financial stability offsets valuation concerns
NCC Group’s outlook is supported by effective cash flow management and a relatively stable balance sheet, despite ongoing challenges in revenue growth and profitability.
From a technical standpoint, momentum indicators remain neutral. However, valuation metrics suggest the stock may be trading at elevated levels, which could limit upside potential.
More about NCC Group plc
NCC Group plc is a global provider of cyber security and software escrow services, helping organizations strengthen digital resilience across public and private sectors. Operating across Europe, North America, and Asia-Pacific, the company employs around 2,000 people and focuses on delivering technology-driven solutions to address evolving cyber security threats.
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