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(Sharecast News) - Cyber security and resilience specialist NCC Group ruled out a potential sale on Thursday, as it posted an uplift in half-year earnings.
The UK firm first launched a strategic review of the business last April, which led to the sale of all its non-core operations. In January, it agreed to sell escrow and verification business Escode to TDR Capital for net cash proceeds of 263m, leaving it a pure-play cyber security and resilience business.
It then launched a final review of the remaining business, including considering a possible sale.
But on Thursday NCC confirmed it had ruled out a potential sale, deciding instead that remaining a listed company was in the best interests of shareholders. "The board's focus remains on executing the group's strategy and maximising value for shareholders," it said.
The update was published alongside numbers for the six months to 31 March. Group revenues, excluding the recently sold Fox Crypto business, rose 5% on a constant currency basis to 151.3m, with cyber security revenue 5.9% stronger at 118.4m.
Group adjusted earnings before interest, tax, depreciation and amortisation surged 27.7% to 23.5m.
Mike Maddison, chief executive, said: "This has been a solid first half, with very clear progress made against our strategy and a trading performance in line with the board's expectations.
"The steps we have taken to simplify and refocus the group are now translating into improved operational execution and financial performance."
Looking to the rest of the year, Maddison said the second half had "started well", adding: "We remain confident in the structural growth drivers of the cyber security market and in our positioning as a focused, scalable business."
The group, which employs around 1,800 people across Europe, North America and Asia Pacific, is forecasting low-to-mid single-digit cyber security revenue growth for the full year. Group adjusted EBITDA is expected to grow faster than revenues.
NCC also announced a 170m tender offer followed by a new 15m share buyback, in the wake of the Escode disposal.
As at 0845 BST, the FTSE 250 stock was trading 1% lower at 139.2p.
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