Six year earnings CAGR 21.9% and dividend 33.9%
NCC Group plc (LSE: NCC, “NCC Group” or “the Group”), the international, independent provider of Escrow and Assurance, has reported its final results for the year to 31 May 2010.
Financial highlights
- Group revenue up by 15% to £53.7m (2009: £46.8m)
- Group adjusted operating profits* up by 16% to £14.8m (2009: £12.7m)
- Group adjusted pre-tax profits* up by 18% to £14.5m (2009: £12.3m)
- Adjusted fully diluted earnings per share* up 14% to 29.7p (2009: 26.1p)
- Total dividend up 16% to 10.75p (2009: 9.25p)
- Cash conversion ratio was 139% of operating profits (2009: 140%)
Operational highlights
- Group Escrow maintained strong revenue growth of 9%
- Escrow UK saw strong organic revenue growth of 8%
- Assurance strengthened position as UK’s largest independent information security business
- Two acquisitions completed to enhance position and widen capabilities
Outlook for 2010/2011:
- Group Escrow renewals forecast to be £15.2m (2009: £14.9m)
- Group Escrow verification order book £2.2m (2009: £2.0m)
- Assurance order book, including the acquisitions, £14.0m (2009: £9.4m)
- Site Confidence monitoring renewals forecast to be £4.3m (2009: £4.1m)
* Operating profit is adjusted for amortisation of acquired intangibles of £1.6m and exceptional profit of £0.3m. Pre-tax profit is adjusted for these items and the unwinding of the discount on the acquisitions contingent consideration of £0.1m.
Rob Cotton, Group Chief Executive, commented:
“We have delivered a strong performance, despite the backdrop of global recession and continuing considerable uncertainty which has persisted for most of the last financial year.
“Over the last six years since listing, we have consistently delivered a combination of strong organic growth and cash generation. We have also acquired and integrated a number of businesses, which have considerably widened our capabilities, both in the UK and internationally.
“Overall this has resulted in the Group’s six year compound annual growth rate (CAGR) of 20.6% for operating profit and 21.9% for earnings. Dividends have grown from 2.5p to 10.75p, a 330% increase or a CAGR of 33.9%.
“We have a very sound business model that will continue to evolve and develop. With high revenue visibility and over £35m of orders and renewals forecast for the current financial year, we are confident that our prospects continue to be very bright.”
View the
Preliminary Results for the year ended 31 May 2010 in full.
Enquiries:
NCC Group (www.nccgroup.com) 0161 209 5200
Rob Cotton, Chief Executive
College Hill
Adrian Duffield / Rozi Morris 020 7457 2020