KAPE & NCC: 2 cybersecurity stocks to safeguard your portfolio

HIGHLIGHTS

  • The Industrial Strategy Challenge Fund (ISCF) of the UK government aims to spend about £8 million on projects to improve cyber security in the country.
  • Kape Technologies’ operating profit increased by 299% year-on-year to $13.6 million in H1 2021.
  • NCC Group’s board announced a dividend of 3.15 pence per share to shareholders for the year ended 31 May 2021.

The UK is currently facing increased threats from cyber criminals of neighbouring countries and the growing ransomware attacks presents a direct danger compared to all other forms of cyber threats.

The National Cyber Security Centre and National Crime Agency have assessed cybercriminals mainly from Russia, and other nearby countries that have been responsible for some of the most devastating ransomware attacks against the UK. Hackers typically intrude into vital systems to encrypt or take control of critical data and demand cash to restore access. Apart from shutting down the ability of a business to function, such cyberattacks may also threaten to publish the confidential data of an organisation on the dark web.

The Industrial Strategy Challenge Fund (ISCF) of the UK government aims to spend about £8 million on projects to improve cyber security in the country, which will be distributed after a competition ending on 8 December. Here is a review of the investment prospect in two cybersecurity stocks listed on the LSE - Kape Technologies and NCC Group.

KAPE & NCC: Market capitalisation and one year return

(Data source: Refinitiv)

Kape Technologies Plc (LON: KAPE)

Kape Technologies is a developer and distributor of technology products for digital and online security. Last month, the digital security software provider purchased the virtual private network (VPN) firm ExpressVPN for a consideration of $936 million.

The shares of Kape Technologies are currently trading at GBX 390.00, down by 2.50%, as of 12:21 PM BST on 12 October 2021.

In H1 2021, Kape Technologies’ revenues increased by 61.9% year-on-year to $95.5 million compared to $59.0 million in H1 2020. Its operating profit increased by 299% year-on-year to $13.6 million in H1 2021 from $3.4 million in H1 2020.

The shares of Kape Technologies returned 129.91% in the last one year to shareholders, and the market cap of the company currently stands at £1,204.52 million as of 12 October 2021.

NCC Group Plc (LON: NCC)

NCC Group is a specialist cybersecurity and software resilience advisory firm with operations in Asia Pacific, Europe and North America. The shares of NCC Group are currently trading at GBX 252.00, down by 0.20%, as of 12:31 PM BST on 12 October 2021.

For the full year ended 31 May 2021, NCC Group’s revenues rose by 2.6%, from £263.7 million in 2020 to £270.5 million in 2021. Its profit before taxation was up by 54.2%, from £9.6 million to £14.8 million in 2021.

NCC Group’s board announced a dividend of 3.15 pence per share to shareholders for the year ended 31 May 2021.

The shares of NCC Group returned 30.91% in the last one year to shareholders, and the market cap of the company currently stands at £781.42 million as of 12 October 2021.

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