NCC Group plc (LSE:NCC) announced the appointment of Guy Ellis as chief executive officer with immediate effect, succeeding Mike Maddison, alongside a trading update indicating that full-year adjusted EBITDA is expected to exceed market expectations.
The cybersecurity services group expects revenue from its continuing Cyber business to reach approximately £235 million for the year ended 30 September 2026, representing growth of 3.7% on a comparable basis.
Cyber adjusted EBITDA is expected to reach £16.3 million, equivalent to approximately 6.9% of revenue, while gross margin is forecast to increase by 1.8 percentage points to a record 38.4%.
The company also expects to report net cash of approximately £53 million at the financial year-end, following the disposal of its Escode business and the completion of a £170 million shareholder tender offer.
NCC confirmed that its financial expectations for FY2027 remain unchanged.
Cyber Revenue Expected to Reach £235 Million
NCC Group expects its continuing Cyber business to report revenue of approximately £235 million for FY2026, compared with £227.4 million in FY2025.
The company reported comparable revenue growth of 3.7%, excluding the effects of non-core disposals.
Cyber gross margin is expected to reach 38.4%, representing an increase of 1.8 percentage points from the previous year.
Adjusted EBITDA for the Cyber business is forecast at £16.3 million, equivalent to approximately 6.9% of revenue.
The company said its planned cost reduction and operational efficiency programme remains on track.
NCC expects its audited FY2026 results to be in line with market expectations for revenue and ahead of expectations for adjusted EBITDA.
The results are scheduled for publication on 10 December 2026.
Group Revenue Expected to Reach £280 Million Including Escode
Including the contribution from Escode before its disposal, NCC expects to report total group revenue of approximately £280.0 million for FY2026.
Group adjusted EBITDA is expected to reach approximately £36.0 million.
Escode, which was disposed of in May 2026, is expected to have contributed approximately £44 million in revenue and £19.7 million in adjusted EBITDA during the eight-month period to May.
The disposal formed part of NCC’s strategy to concentrate its operations on cybersecurity services.
The company continues to provide transitional services to the buyer under an agreement scheduled to run until 28 May 2027.
Following the transaction, NCC’s continuing operations are focused on its Cyber business.
Guy Ellis Appointed Chief Executive Officer
NCC Group confirmed that Guy Ellis has been appointed chief executive officer with immediate effect, replacing Mike Maddison.
Ellis joined the company’s board as chief financial officer in June 2023 and has been involved in the group’s financial and operational restructuring.
His responsibilities have included supporting improvements in financial performance, commercial operations and the disposal of Escode.
NCC said the board selected Ellis following an internal and external appointment process.
As part of the leadership transition, Andy Beaver, currently group financial director, will become interim chief financial officer.
The company confirmed that there is no additional information concerning Ellis requiring disclosure under UK Listing Rule 6.4.8R.
The leadership changes follow the completion of NCC’s transformation into a business focused on cybersecurity services.
Mike Maddison Steps Down Following Business Restructuring
Mike Maddison is stepping down as chief executive following a period in which NCC completed several changes to its operating structure and capital allocation.
These included the disposal of Escode, refinancing arrangements and shareholder capital returns.
Chris Stone, chair of NCC Group, commented on Maddison’s departure and the appointment of his successor:
“Over the past four and a half years, Mike and the Executive team have transformed NCC into a focused and strategically positioned cyber security business. The successful disposal of Escode, the strengthening of our balance sheet and the substantial return of capital to shareholders have created a strong platform for future growth. After delivering our planned transformation, Mike is stepping down as CEO.
“Today’s trading update demonstrates the progress that has been made, with revenue growth, significantly improved profitability and a business that is increasingly focused on delivering sustainable shareholder value.
“As the Group moves forward, the Board concluded, following an internal and external process, that Guy is the right person to lead NCC through this next chapter.
“Having helped shape and deliver our strategy, Guy brings a unique combination of operational, commercial and financial leadership experience, together with a deep understanding of our clients, people and markets. Since joining the Board as Chief Financial Officer in June 2023, he has played a central role in strengthening the Group’s financial performance and commercial discipline including delivering the successful divestment of Escode.
“To support a seamless transition, Andy Beaver, currently Group Financial Director, will assume the role of Interim Chief Financial Officer.
“On behalf of the Board, I would like to thank Mike for his vision and leadership. He leaves NCC as a stronger business with significant opportunities ahead.”
Maddison also commented on his departure:
“I am incredibly proud of what our people have achieved. Together we have transformed NCC into a focused cyber security business with stronger foundations, and a clear strategic direction.
“I leave knowing the business is in capable hands and look forward to seeing the next phase of growth under Guy’s leadership.”
Net Cash Expected to Reach £53 Million
NCC expects to report a net cash position of approximately £53 million at 30 September 2026.
The company completed a £170 million tender offer in August 2026, following the completion of an initial £40 million share buyback programme in April.
A further £15 million share buyback programme is underway.
NCC reported that approximately 35% of the allocated £15 million programme had been executed during the financial year.
The group also completed refinancing arrangements in September 2026, signing a new three-year revolving credit facility worth £60 million.
The financing arrangement provides an additional source of liquidity for the continuing business.
The company did not disclose a revised capital allocation policy alongside the trading update.
Cybersecurity Strategy Targets Recurring Revenue and Margin Expansion
Under Ellis’s leadership, NCC intends to focus on developing its cybersecurity operations through organic growth, managed services and recurring revenue.
The company identified closer relationships with existing clients and expansion of its cybersecurity capabilities as priorities.
Management also intends to pursue further improvements in operating profitability.
Ellis outlined a longer-term objective of achieving adjusted EBITDA margins in the mid-teens, compared with the approximately 6.9% margin expected for the continuing Cyber business in FY2026.
The announcement did not specify a timetable for reaching this margin objective.
NCC also identified developments in artificial intelligence and the associated changes in cybersecurity requirements as areas relevant to its services.
The company plans to provide further information on its growth strategy when it publishes its audited annual results in December.
FY2027 Financial Expectations Remain Unchanged
NCC Group reaffirmed its financial expectations for the year ending 30 September 2027.
The board said it remains confident in the outlook for the continuing Cyber business following the completion of the Escode disposal and progress with its cost and efficiency programme.
The company expects FY2026 adjusted EBITDA to exceed market expectations while revenue remains in line with forecasts.
Its next scheduled financial update will be the publication of audited FY2026 results on 10 December 2026.
NCC said the results presentation will include further details of its strategy, growth opportunities and operational priorities.
No revised numerical guidance for FY2027 was provided in the announcement.
New Chief Executive Comments on Growth Strategy
Guy Ellis, chief executive officer of NCC Group, commented on the company’s strategy following his appointment:
“With the transformation of NCC into a pure-play cyber security business now complete, our strategy is clear: deepen client relationships, expand our managed services capabilities, scale our cyber expertise and help organisations respond to an increasingly complex threat landscape.
“We are privileged to work with many of the world’s leading organisations and there is a significant opportunity to build on those relationships. As AI continues to reshape the risk landscape, the need for trusted independent cyber expertise has never been greater.
“I want to thank all our colleagues for their commitment, hard work and focus throughout FY26.
“Everyone at NCC is focused on the significant opportunity ahead of us as we target organic growth, recurring revenues and to drive profits through a continued margin expansion with a plan to get to mid teen EBITDA margins.”
The company’s continuing strategy is focused on cybersecurity services, with management targeting organic revenue growth, an increased contribution from recurring services and improved profitability.
More About NCC Group
NCC Group plc (LSE:NCC) is a cybersecurity services company providing specialist security expertise and related services to organisations.
Following the disposal of its Escode business in May 2026, the group has concentrated its operations on cybersecurity.
For FY2026, NCC expects Cyber revenue of approximately £235 million, adjusted EBITDA of £16.3 million and gross margin of 38.4%.
Including Escode’s contribution before disposal, total group revenue is expected to reach approximately £280 million, with adjusted EBITDA of £36 million.
The company expects to report net cash of approximately £53 million at 30 September 2026.
Guy Ellis has been appointed chief executive officer, succeeding Mike Maddison, while Andy Beaver assumes the role of interim chief financial officer.
NCC is scheduled to publish its audited FY2026 results on 10 December 2026.
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