After experiencing major financial effects from “market volatility,” the multinational cyber security company NCC Group has lowered its earnings projections.
The company, which has its headquarters in Manchester, now projects that its most recent fiscal year’s modified running profit will range from £28 million to £32 million.
NCC had originally forecast a surplus of about £47 million.
The company added that instead of the high single-digit growth indicated in its half-year results, it now anticipates low single-digit constant currency growth for its cyber protection revenue growth.
According to NCC, its software resilience company is still on schedule to meet objectives.
The organization stated that it is “scrutinizing the underlying cost base and will take appropriate action in due course” as a result of its projected reduced profit.
In February, NCC announced that it would be eliminating positions “as a result of the current market conditions”.
“These economic headwinds and current challenges to the group’s cyber security revenues, which the board expects to persist into the next financial year, reinforce the need to implement the next chapter of the NCC Group strategy,” it said in a statement to the London Stock Exchange.
“The strategy will generate revenue from a broader service portfolio that addresses the entire cyber security lifecycle, with a stronger presence across industries.”
“This will be aided by the implementation of a global delivery model, including an offshore delivery and operations center, as well as investment in the cyber go-to-market model and brand.”
The board continues to be optimistic about the medium-term outlook for the cyber market on this premise, and these strategic moves will put the company in a better position to resume higher development when the market recovers.
The software resilience division of NCC was recently valued at about £240 million by analysts at Panmure Gordon, who also predicted that a sale would be “the most likely result” of the strategy review.
“Macro-economic headwinds, market volatility, and uncertainty are undermining business confidence, particularly in the technology sector where we are well represented, and as a result, we are seeing demand fall in the form of projects being further delayed, scaled back, or canceled,” said chief executive Mike Maddison.
“While we cannot control demand in the short term, the current conditions reinforce the logic of our strategy, which I outlined in February.”
“We remain optimistic that the group’s strategy will result in a more resilient business that is well-positioned to capitalize on opportunities to meet changing client needs in a dynamic cyber market.”
