NCC Group plc
Disposal of Web Performance
NCC Group plc (LSE: NCC, "NCC Group" or "the Group"), the independent global cyber security and risk mitigation expert, is today announcing the disposal of the Web Performance business.
The Group completed the sale of the Web Performance business ('Web') to Eggplant (formerly known as Testplant) for immediate cash consideration of £7.5m on a cash and debt free basis (subject to any final post completion adjustments to working capital).
Eggplant is a company backed by the Carlyle Group and specialises in user-centric, digital automation intelligence solutions that enhance the quality and performance of the digital experience. Its core test automation and analytics activities are closely aligned to the business of NCC Group's Web Performance business.
NCC Group's Strategic Review which completed in July 2017 concluded that the Web Performance business had little strategic overlap with the Group's broader cyber security and business continuity activities and therefore it would be more likely to flourish under new ownership in a group that was more aligned to its core activities of Website Performance monitoring. This would also allow the Group to focus on its two retained divisions, Assurance and Escrow.
At the end of February 2018, Web's net assets were £6.0m, which included the Group's remaining goodwill from the original acquisition of Web Performance (and is subject to post completion adjustments to working capital). In the nine months to the end of February 2018, Web contributed £0.4m of Adjusted EBIT(1) to the Group's performance.
Web Performance was designated as a discontinued activity in the Group's Interim results that were published on 16 January 2018, given the earlier decision to sell the business. The disposal therefore has no impact on expected full year Adjusted EBIT from continuing activities and only an immaterial impact on total full year Adjusted EBIT. The cash proceeds will reduce the Group's net indebtedness.
Separately, the disposal process for the Software Testing business is ongoing.
The Group continues to trade in line with the Board's expectations for full year Adjusted EBIT(1), as announced in its Interim Results on 16 January 2018.
The Group expects to report its full year results, for the year ended 31 May 2018 on Tuesday, 17 July 2018.
28 March 2018
(1) Adjusted EBIT excludes individually significant items, share based payments, unwinding of discounts on deferred consideration and amortisation of acquired intangible assets. For Web Performance specifically, it also includes an estimate of its fair share of attributable central overheads.
NCC Group
Enquiries:
NCC Group (www.nccgroup.trust) +44 (0)161 209 5432
Adam Palser, CEO
Brian Tenner, CFO
Maitland +44 (0) 207 379 5151
Neil Bennett / Al Loehnis
About NCC Group plc
Listed on the London Stock Exchange, NCC Group is a global expert in cyber security and risk mitigation, working with businesses to protect their brand, value and reputation against the ever-evolving threat landscape. With the company's knowledge, experience and global footprint, it is best placed to help businesses identify, assess, mitigate & respond to the risks they face.
Headquartered in Manchester, UK, with over 35 offices across the world, NCC Group employs almost 2,000 people and is a trusted advisor to 15,000 clients worldwide. https://www.nccgroup.trust/uk/
About Eggplant (formerly known as Testplant)
Eggplant provides user-centric, digital automation intelligence solutions that enhance the quality and performance of the digital experience. Only Eggplant enables organizations to test, monitor, analyze, and report on the quality and responsiveness of software applications across different interfaces, platforms, browsers, and devices, including mobile, IoT, desktop, and mainframe. Learn more at www.eggplant.io
