Relentless security hacks and data thefts have driven companies to the door of NCC (NCC), which provides cyber security software, risk consulting and safe data storage. The FTSE 250 group is boosting robust organic growth with acquisitions that are helping it to expand internationally. And while the shares may at first sight look like they're on a punchy multiple at 20 times forecast earnings, we consider this a price worth playing for a key player in such an explosive industry.
- Excellent opportunities in end market
- Boosting organic growth with acquisitions
- Rising recurring revenue
- Assurance margins set to rise
- Punchy earnings multiple
- One-off costs from exiting domain services
Cyber crime costs UK businesses an estimated £27bn every year, which is equal to the total projected cost of London's Crossrail 2. This backdrop has fuelled strong growth for NCC. Organic sales leapt 19 per cent in the year to 31 May, driving adjusted operating profit up 46 per cent to £38.4m.