NCC Group FY09 Profit Increases

7/2/2009 6:38 AM ET

(RTTNews) - Thursday, independent information security assurance company NCC Group Plc (NCC.L: News ) reported an increase in profit for fiscal 2009, as it experienced revenue growth both organically and through acquisitions. The company also proposed a final dividend that leads to a 32% increase in total dividend for the year.

For the year, pre-tax profit increased to GBP 10.87 million from GBP 8.69 million last year. On an adjusted basis, pre-tax profit increased to GBP 12.28 million from GBP 10.48 million in the prior year.

Adjusted results exclude amortization of acquired intangibles of GBP 1.2 million.

Profit attributable to equity holders was GBP 7.70 million or 22.1 pence per share, higher than GBP 6.35 million or 18.3 pence per share a year ago. On a per share basis, adjusted earnings rose 17% to 26.1 pence from 22.4 pence last year.

Revenue increased 31% to GBP 46.84 million from GBP 35.75 million in the previous year. Excluding acquisitions, revenue grew 19% to GBP 43.40 million.

Segment-wise, Group Escrow's revenue increased to GBP 21.05 million from GBP 18.01 million and Assurance Testing's revenue was GBP 19.12 million, up from GBP 12.84 million last year. Revenue from Consultancy was GBP 6.66 million, higher than GBP 4.90 million a year ago.

Looking forward, Chief Executive Rob Cotton said, "We have started this year in a very strong position which has given us considerable confidence in our ability to deliver further sustainable growth."

NCC sees Group Escrow renewals at the start to the year at GBP 14.9 million, up from GBP 13.6 million achieved in the financial year to May 31, 2009 and a verification order book of GBP 2.0 million, of which GBP 0.6 million relates to Escrow Europe and Escrow US.

Assurance Testing order books have improved to GBP 9.4 million from GBP 7.1 million in the prior year. This includes Consultancy division's order books of GBP 2.9 million compared with GBP 2.5 million a year ago. The division also has GBP 4.1 million of monitoring renewals forecast for the coming financial year.

Further, the company recommended a final dividend of 6.25 pence per share, resulting in a total dividend of 9.25 pence per share for the year. The dividend will be paid September 25 to shareholders on the register at August 28, 2009. The ex-dividend date will be 26 August 2009.

Separately, the company announced the retirement of Eurfyl Gwilym as a non-executive director, effective September 16. The company also announced the appointment of David McKeith as Gwilym's successor, effective July 29.