I have a for me medium sized position here and first bought in 2017.In the last couple of years I have not paid too much attention to NCC.
Listening to the vox markets podcast with Paul Hill and Christopher Mills of Harwood, I was surprised to hear Mills saying that they are buying NCC as we speak and they have close contact with management who they hold in high regard. I guess the vehicle must be Odyssean who held 6.2% at 30.9.24. They have not issued a TR-1 RNS since then...indeed the only TR-1 issued by NCC since 30.9.24 was one on October when Montanero further reduced-I assume Montanero are completely out now.
Mills referred to a sale of Escrow for £1 a share and said he would be disappointed if the NCC price was not at least 200p in 18 months time.
I bring this up as Mills has had more successes than failures over the years. |
A lot of director buying today, suggests they know more than the market! |
Loss 21 million , debt is going up |
 From the CEO's review
'The Group has a strong pipeline of opportunities, and management is pleased with the foundations put in place through strategic actions taken in the period. In line with the wider market, the Group has recently seen a lengthening of sales cycles, in particular across the Cyber business, compared to H2 to May 2024 and also the four-month period to September 2024'. ---- ok, get in now, lengthening sales cycles have pushed the closing of some sales past the end of the final quarterly window, so likely still happening but will be recognised in Q1 for 2025.
'In spite of this, management expects to deliver profitable growth across both businesses in the current financial year to 30 September 2025, with flat to low single digit revenue growth and modest Group Adjusted EBITDA gains (after adjustment for the non-core disposals and share-based payments) and remains confident in delivering the Group's medium-term financial goals'. ---- Underwhelming or under promising?
We are only back to where we were in June price wise, I'll hold for now. |
That's why I sold, that's a big difference so I have lost trust in the figures. Also I don't follow the figures at all so no point me holding something I cannot understand |
A slightly complex set of results.
From Septembers trading statement
Expected - revenue £104m, adjusted operating profit £6m for 4m to Sept 30
From this mornings results
Actual - revenue £105m, operating profit £2.3m for 4m to Sept 30
Where has the 4m expected profit gone? Is this the disappointment or is the outlook just not rosy enough?
Need to dig deeper into the figures but I thought I'd get the conversation rolling. |
To state the obvious, the immediate goal for NCC is a return to the FTSE250. Requires share price of at least 176p which should be attainable on a modicum of good news. |
Can't see any attraction for shareholders in surrendering control of escode for Kelso shares. Apart from Kelso shareholders and their team. |
Piece in today’s Sunday Times regarding a recent approach for the escrow business. Assume that’s what the 4 Betaville bulletins have been about over the last 10 days. |
I think highly overvalued |
I have been a holder in NCC for some time.
I think they are now looking good both for organic growth and as a possible takeover candidate.
When a company does the sort of extensive restructuring they have done, I think it makes them a cleaner target for a takeover, as all the hard restructuring work has been carried out |
The market is taking notice they will be debt free in October with surplus cash as well |
Would imagine some positive news flow has surfaced on the back of latest statement looks like NCC is on the right track again lets home it stays on that track |
What just happened? |
With recent announcement it brings a new higher level of price under-pinning with scope for further success it would seem a safe investment and with divi included albeit not mindblowing in the absence if any global market downturn imo |
"NCC Group plc (LSE: NCC, "NCC Group" or "the Group"), a people-powered, tech-enabled global cyber security and software escrow business ..."
people-powered: do they burn their employees to generate electricity/heat
tech-enabled: you only need to check their profit margin (when profitable) |
 2 August 2024Kelso Group Holdings Plc ("Kelso" or the "Company")Update on Investment in NCCKelso, the main market listed acquisition vehicle, notes the announcement made yesterday at 4:30pm by NCC Group plc ("NCC"), regarding the disposal of its non-core business based in the Netherlands. NCC is Kelso's largest shareholding, with the Company holding 2.5m shares.Terms have been agreed for the sale of NCC's subsidiary, Fox Crypto B.V., to CR Group Nordic AB for a cash consideration of c.£66m. This transaction represents a 16.5x EBITDA multiple.This announcement follows a strong set of preliminary final results from NCC released at 7am yesterday. NCC's net debt position as of 31 May 2024 was £38.5m. The proceeds from the sale will be used to transform NCC's balance sheet, achieving a substantial net cash position.Kelso continues to believe that the underlying valuation of NCC, with its two discreet businesses in Cybersecurity and Escrow software, is significantly greater than the current market capitalisation. For further information please contact:Kelso Group Holdings Plc+44 (0) 75 4033 3933John Goold, Chief Executive OfficerMark Kirkland, Chief Financial OfficerJamie Brooke, Chief Investment OfficerZeus (Broker)+44 (0) 20 3829 5000Nick Cowles, Ed Beddows, John Moran (Investment Banking)Ben Robertson (Corporate Broking)Camarco (Financial PR)+44 (0) 20 3757 4980Billy Clegg, Tom Huddart About Kelso - https://kelsoplc.com/Kelso was established in November 2022 to identify, engage and unlock trapped value in the UK stock market. Kelso's strategy is to invest in situations where it believes there is an anomaly between the intrinsic value and prospects of a company and its stock market valuation. Kelso will, in particular, look for situations where it believes the sum of the parts of a business is greater than the current value. The Kelso team is led by an experienced and well-invested Board and management team with a track record of identifying and creating value in the UK small and mid-cap public markets. The board of Kelso owns 20.5% of the equity having invested in each of the last three fundraising rounds. |
16 August 2024Kelso Group Holdings Plc ("Kelso" or the "Company")Update on Investment in NCC Group Plc ("NCC")Kelso, the main market listed acquisition vehicle, makes the following update on its investment in NCC, the UK listed Cybersecurity and Software Escrow business.Kelso has increased its holding from the previously disclosed 2.5m shares to a total of 3 million ordinary shares and contracts for differences in NCC. The current holding consists of 2.36 million ordinary shares and 0.64 million contracts for differences, with an average cost price of 125p.Kelso confirms there have been no material change in Kelso's other holdings since previously announced. For further information please contact:Kelso Group Holdings Plc+44 (0) 75 4033 3933John Goold, Chief Executive OfficerMark Kirkland, Chief Financial OfficerJamie Brooke, Chief Investment OfficerZeus (Broker)+44 (0) 20 3829 5000Nick Cowles, Ed Beddows, John Moran (Investment Banking)Ben Robertson (Corporate Broking) About Kelso - https://kelsoplc.com/Kelso was established in November 2022 to identify, engage and unlock trapped value in the UK stock market. Kelso's strategy is to invest in situations where it believes there is an anomaly between the intrinsic value and prospects of a company and its stock market valuation. Kelso will, in particular, look for situations where it believes the sum of the parts of a business is greater than the current value. The Kelso team is led by an experienced and well-invested Board and management team with a track record of identifying and creating value in the UK small and mid-cap public markets. There may be instances where Kelso itself could be used as a vehicle by an undervalued company to spin off a subsidiary into its own listing. The board of Kelso owns 20.5% of the equity having invested in each of the last three fundraising rounds. |
hTTps://simplywall.st/stocks/gb/software/lse-ncc/ncc-group-shares |
fingers crossed but does look very promising. |
tizo - "...the company looks to have great prospects in the short and long term."
Yes, it always has looked that way. However the historic results and share price tell a different story. There is always hope that next time will be different and we appear to be entering another period of hope. Possibly wise not to follow it too far. |
Tizo
Well done for investing just at the right time! |
I have researched NCC since the Naked Trader recommended this as a buy last week. The fundamentals look decent and the prospects for growth both organic and acquisition shows a lot of potential. Debt free in October with cash in the bank. On the plus side with further progress regards the share price it could be added to the FTSE 250 sooner rather than later.I invested this morning.Can't believe the silence on this board as the company looks to have great prospects in the short and long term. |
This was a substantial subsidiary but, surprisingly, I have found no mention of it in the recent financial statements although on the basis of this transaction it had a value of around 15% of the groups market capitalisation. I had hoped to find a statement of company structure, subsidiaries etc but it seems to be well hidden!
The company says -
"Fox Crypto was previously a standalone entity, and the disposal will not impact the Group's continuing Cyber capabilities."
On that basis it's a good move which puts the company on a firmer financial base and in a position to make add-on acquisitions.
However, the company group structure and recent history does leave me with questions. |
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
Hot Features
Premium
