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Kelso Hails NCC Escode Sale as Undervaluation Case for UK Cybersecurity Stocks

Story Highlights
  • Kelso backs NCC Group’s £275m Escode sale and planned capital return, seeing the deal as strongly value-accretive for shareholders.
  • Post-disposal, Kelso views NCC’s pure-play cyber unit as significantly undervalued versus peers, reinforcing its thesis on UK market mispricing.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Kelso Hails NCC Escode Sale as Undervaluation Case for UK Cybersecurity Stocks

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The latest announcement is out from Insight Business Support Plc ( (GB:KLSO) ).

Kelso Group Holdings has provided an update on its significant stake in NCC Group, a UK-listed cybersecurity and software escrow specialist, following NCC’s agreement to sell its Escode business to TDR Capital for an enterprise value of £275 million. The disposal, which comes after a strategic review, is accompanied by NCC’s plans to return a substantial portion of the proceeds to shareholders and launch a £70 million share buyback, moves Kelso supports as value-accretive for investors. Post-transaction, NCC will become the UK’s largest pure-play cybersecurity firm, and Kelso expects the ongoing strategic review of NCC’s cyber division to culminate in a sale in 2026, arguing that the implied valuation of the remaining business is at a steep discount to peers and underscores broader undervaluation in the UK equity market. Kelso also noted that aside from a recent purchase of Saga shares and a £2 million fundraising completed in December 2025, its portfolio of six core investments remains largely unchanged, with further updates on holdings expected during 2026.

The most recent analyst rating on (GB:KLSO) stock is a Hold with a £3.00 price target. To see the full list of analyst forecasts on Insight Business Support Plc stock, see the GB:KLSO Stock Forecast page.

Spark’s Take on GB:KLSO Stock

According to Spark, TipRanks’ AI Analyst, GB:KLSO is a Neutral.

The score is weighed down primarily by the sharp deterioration in financial performance and cash generation in 2024 versus 2023, despite a relatively solid balance sheet. Technical indicators are broadly neutral with slightly weak short-term momentum, and valuation cannot be assessed due to missing P/E and dividend yield data.

To see Spark’s full report on GB:KLSO stock, click here.

More about Insight Business Support Plc

Kelso Group Holdings Plc is a London-listed investment vehicle founded in 2022, focused on undervalued UK small and mid-cap companies. Backed by more than 65 individual investors and a few institutions, its board, which owns close to 20% of the company, brings extensive experience across fund management, corporate broking, M&A, private equity and law. Kelso targets a concentrated portfolio of fewer than ten core holdings and seeks to unlock value in investee companies through active engagement on strategy and investor relations, with current principal investments including Saga, NCC Group, THG, Angling Direct, The Works.co.uk and Selkirk.

Average Trading Volume: 331,293

Technical Sentiment Signal: Hold

Current Market Cap: £13.4M

For an in-depth examination of KLSO stock, go to TipRanks’ Overview page.

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