NCC Group 2018 interim results
Group revenue from continuing operations grew by 7.2%:
o Organic retained Assurance growth 14.3% - all four territories double-digit growth
o Escrow organic growth 1.8% (2.1% before FX)
GM% improved by 2.6% points from 36.8% to 39.4%:
o Assurance GM% from continuing operations grew by 2.7% points to 32.3% through utilisation gains
o Escrow GM% recovered by 4.9% points through better cost control and improved verification testing delivery processes
Adjusted operating profit from continuing operations fell to £14.1m (2017: £16.2m) due largely to planned overhead increases committed in the prior year and adverse FX charges of £1.3m which more than offset GM gains
Operating profit fell from £7.4m to £6.6m for the same reasons noted above
Adjusted basic earnings per share 3.7p (2017: 4.7p), Basic earnings per share 1.4p (2017: earnings 2.0p)
Improved net cash flow from operations of £14.7m (2017: 12.2m) driven by improving working capital management;
Relocation to new Manchester HQ completed incurring £3.7m capital expenditure in the Period
Interim dividend maintained at 1.5p per share
