NCC Group, a FTSE 250 tech firm, has announced a change in the strategic direction of its cyber security division in response to a decline in revenue during the first half of the financial year.
The division's revenue plummeted nearly eight per cent to £123.5m, from £133.9m for the same period in 2024, as reported by .
NCC attributed this slump to a "decline in our high-volume, lower value testing and compliance engagements as clients reacted to macroeconomic uncertainties in the Autumn and Spring."
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In response, the division will shift its focus towards "strategic higher value engagements", including managed services, identity and access management, operational technology security, and advanced testing.
NCC emphasized that these areas have longer sales and onboarding cycles, supported by its scalable global delivery capabilities and strategic technology partnerships.
The company noted that the need for robust cyber security "has never been clearer," following a series of high-profile attacks on major retailers in recent months, including the significant hit suffered by Marks and Spencer.
The attack is expected to result in a £300m profit loss.
NCC's profit jumped after crypto sale
Despite the decline in revenue from its cyber security division, NCC's pre-tax profit surged, largely due to a one-off boost from the sale of its Fox Crypto business in March 2025 for £65.6m, which nearly doubled profit for the period to £16.6m.
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Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) were £21.5m, decreasing from £25.5m the previous year.
The group is still evaluating the potential sale of its Escode division, which offers software escrow and verification services.
Earlier this year, it was stated that several private equity companies, such as Montagu Private Equity and Bridgepoint, were possibly interested in putting a bid on Escode.
During the first-half, the division witnessed a revenue growth of just over 1%, resulting in £33.3m.
Mike Maddison, the chief executive of NCC, disclosed: "Escode has now delivered ten consecutive quarters of year-on-year revenue growth. As announced on 28 April 2025, we are exploring strategic options for Escode, including a potential sale."
He also added, "If concluded, this would enable NCC to become a pure-play Cyber Security provider and return significant capital to shareholders and make further investment in our Cyber Security business."