Posted on April - 23 - 2010
NCC has £25m acquisition fund
Manchester-based IT security company NCC Group has the firepower for more swoops after securing a new, three-year £25m bank facility.
NCC Group, which provides IT security testing and ‘escrow’ services – enabling customers to copy software programme codes to protect them if a supplier goes bust - said the agreement with the Royal Bank of Scotland ensures it has the necessary capability to meet its acquisition goals.
Jonathan Imlah, an analyst at Altium Securities, said the agreement was a clear sign of confidence in the group and its ability to continue its successful strategy of organic and inorganic growth.
Last month, NCC bought Warrington-based Meridian Services International for up to £3m and has previously made swoops in the UK, US and Europe.
In a trading update, NCC Group – led by chief executive Rob Cotton – said overall revenues for the 10 months to the end of March were up 13 per cent on the same period last year.
Income for its escrow division is up 10 per cent and for its assurance division is 16 per cent ahead, although NCC said its ability to recruit and retain capable testers has restricted the amount it has been able to deliver from its order book, as it constantly faces pressure from rivals poaching staff.
The group added it was well on course to deliver another strong year for the 12 months to the end of May.
Results are due in early July.
Shares ticked up 1.8 per cent, or 6.75p to 383.5p.
Mr Imlah said: “This is a very solid update from NCC Group and underlines its attractive mix of recurring revenues and growth.”
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