Ncc Group Plc · LSE:NCC
Ncc — IPO Roadshow (July 2004)
24 slides from Ncc's IPO roadshow presentation, July 2004
Slide 1: NCC Group Admission, placing and employee offer
NCC GROUP Admission, placing and employee offer June/July 2004 Rob Cotton – Chief Executive Paul Edwards – Group Finance Director 1
Slide 2: Overview
Overview Leading independent provider of IT Assurance, Security and Consultancy Services Three complementary divisions addressing risk issues of major UK businesses UK’s leading provider of software escrow 88 of FTSE 100 are escrow customers – client base over 9,400 beneficiaries Last 3 ye
Slide 3: Escrow Solutions
Escrow Solutions What is an Escrow Solution? Escrow is a legal contract between three parties - licensor (or owner), licensee and an independent trusted third party Holds software source code or business critical material Provides protection from key supplier failure or a failure of maintenanc
Slide 4: History
History Admission NXDs appointed £4.8m 2004 Barclays Private Equity bought in Operating and Paul Edwards appointed FD Rob Cotton appointed Profits Chief Executive. £3.3 2003 ECI and previous m management exited £2.3m 2002 ECI debt repaid £1.3 2001 Escrow Solutions became main activity m Rob Cotton a
Slide 5: Group Financial Performance
Group Financial Performance Year to 31 May 2002 2003 2004 2 Year £'000 £'000 £'000 CAGR Turnover Escrow Solutions 5,123 5,946 7,546 Testing Solutions 1,862 2,874 3,413 Consultancy 3,392 3,471 4,357 Less: deferred income (667) (464) (797) Total Turnover 9,710 11,827 14,519 22% Turnover growth 15% 22%
Slide 6: Group Financial Performance
Group Financial Performance Year to 31 May 2002 2003 2004 2 Year £’000 £’000 £’000 CAGR Operating profit * Escrow Solutions 2,627 2,735 3,760 Testing Solutions (305) 711 884 Consultancy 584 447 900 Less: head office costs (592) (577) (743) Total 2,314 3,316 4,801 44% Operating profit growth 76% 43%
Slide 7: Group Financial Performance: Cashflow
Group Financial Performance Cashflow Year to 31 May 2004 £'000 Net cash inflow from operating 6,001 activities (783) Exceptional charge – deal fees 5,218 Returns on investments and servicing of (1,193) finance Taxation (924) Capital expenditure and financial (148) investment Cash inflow before finan
Slide 8: Integrated Offering
Integrated Offering Escro Testing Consultanc w Solutions y Escrow Verificatio Specialist Penetration Information IT Solution n Testing Testing Security Consultanc s Services Services Services y Assuring your Verifying your Assuring your Securing Protecting A business systems are systems partnership
Slide 9: Escrow Solutions
Escrow Solutions Sales £7.6m Agreements automatically Contribution £3.8m renew annually Cornerstone of NCC Group Provides service to over Over £5.5 million of Escrow income 9,000 beneficiaries is from renewals for 2004/5 Only significant European provider 88 of FTSE 100 have NCC Group Escrow
Slide 10: Escrow Solutions: Market potential
Escrow Solutions Market potential Addressable UK market estimated at £65m - £85m * Escrow Solutions 2004 turnover £7.6 million Most companies do not have sufficient protection Existing customers are a significant growth opportunity Customers average only 1.6 agreements NCC Group is the m
Slide 11: Testing Solutions
Testing Solutions Sales £3.4m In the testing Contribution £0.9m market for over 20 years Verification Services confirmation code held under an Depth of expertise and knowledge escrow agreement works Specialist Testing proves Working with latest systems robustness & technologies and clients perfo
Slide 12: Testing Solutions: Verification Testing
Testing Solutions Verification Testing Sold by Escrow Solutions sales team – high growth area 191 verifications in 2004 – up 40% on 2003 Delivered by Testing Solutions technical resources Three levels of service Integrity Plus – collection and securing code Full Verification – assurance
Slide 13: Testing Solutions: Specialist Testing
Testing Solutions Specialist Testing Performance and robustness testing of mobile data infrastructure Interoperability testing for handsets, MMS and video streaming Performance testing of web applications Definition of test strategies and regimes Consultants have highly specialist skills 1
Slide 14: Testing Solutions: Penetration Testing
Testing Solutions Penetration Testing A leading UK provider of penetration testing services Four expert CHECK accredited team leaders - only 73 in the UK Ethically hack networks and web sites Consultant rather than tool led Over 600 penetration tests undertaken – internal and external Sa
Slide 15: Consultancy
Consultancy Sales £4.4m Completely independent Contribution £0.9m Reputation for technical excellence Only use expert, qualified in public and private sectors and experienced consultants More than 75% of revenues in 2003/04 from existing clients – Have maintained long term “Trusted Advisor” clie
Slide 16: Consultancy: IT Consultancy
Consultancy IT Consultancy Help clients maximise value from their IT Independence from hardware and solution providers is key strength Consultants for over 30 years on whole IT lifecycle Over 75% of 2003/04 revenue came from existing clients 16
Slide 17: Consultancy: Information Security Consultancy
Consultancy Information Security Consultancy Sound governance and regulatory requirements forcing compliance – market spent £1.25bn in 2003 Ensure clients information and infrastructure are safe, secure and compliant Grown out of IT Consultancy to allow focused growth - £0.4m fees earned in fi
Slide 18: Current Trading and Prospects
Current Trading and Prospects Strong sales and trading performance since 31 May 2004 Testing Solutions secure order book over £1.0m Consultancy secure order book over £1.0m Expected Escrow Solutions revenue mix Annual renewals Additional agreements from existing beneficiaries Agreement
Slide 19: NCC Group Future
NCC Group Future Listing Raise profile of escrow business Secure capital structure to support growth Help to recruit staff Organic development across all divisions: Expand Escrow and Penetration Testing product sets Focus on customer penetration and recurring revenues – escrow and test
Slide 20: Summary
Summary Escrow Solutions is the established market leader Very high levels of recurring revenue Independent trusted advisor across all three divisions History of innovation and business unit development Consistent track record of growth Strong record of cash flow generation Well establis
Slide 21: Appendices
Appendices 21
Slide 22: Board
Board Paul Mitchell FCA– Non Executive Chairman MD of Corporate Finance firm Rickitt Mitchell & Partners Experienced Non Executive Rob Cotton ACA – Chief Executive Led secondary MBO, was Group FD and Director of Escrow Solutions Formerly senior executive in Caudwell Group and Evans Halshaw P
Slide 23: Management Structure
Management Structure Eurfyl ap Gwilym Paul Mitchell James Wallace Independent Non-Executive Non Executive Chairman Independent Non-Executive Rob Cotton Group Chief Executive John Redeyoff Jon Leigh Paul Edwards Jane Pink Felicity Brandwood Director of Director of Escrow Group Finance Director of Tes
Slide 24: Important Notice
IMPORTANT NOTICE The information contained within this document, and all information provided during the course of the presentation of this document, is intended for the addressee only and is of the utmost confidentiality. No information contained within this document or provided during the presenta