Ncc Share Discussion Threads

[investment dave] 22/2/2017 08:13

Oversold niw

[masurenguy] 22/2/2017 08:09

iLeeman22 Feb '17 - 1085: Alot of people are moaning about the timing of the RNS i fail to see how it makes much difference, it goes down regardless.

Of course it makes a very significant difference because it reflects upon both management competence and credibility. Facts are facts but the timing, way and manner in which they are presented has a direct bearing on the way management is perceived. To make such an announcement just 15 minutes before the market closes, announce a strategic review and combine this with a last minute cancellation of their
Capital Markets Day event the following day, just smacks of panic and incompetence. Whatever the extent of the problems, the market needs to have the confidence in management to successfully address them. This mornings further fall very clearly illustrates this issue!

[blueblood] 22/2/2017 07:51

Never mind answers he should be sacked now imho!

[igoe104] 22/2/2017 07:49

FFS, just as you think your in for a good year, the market gives you a smack in the face.

I want to know what cost cutting measures NCC are putting in place ?

also why the hell are they building a new HQ in Manchester, when we have a profit warning ?

Rob cotton, needs to come up with some answers, or his job could be up for question.

[ileeman] 22/2/2017 07:05

Alot of people are moaning about the timing of the RNS i fail to see how it makes much difference, it goes down regardless. Company now has a £350m cap which is very cheap, they have had a massive set back but hopefully they can will sort it and get back on the road to recovery.

[blueblood] 22/2/2017 06:21

Looks like they have been massaging their figures over time to continue high growth story. I expect another kitchen sink job to come after xterm all consultants have been in and CEO has to be replaced. Will then be good recovery play imo. Issue is what will the 3rd profit warning show and what will the share price be? Nor sure how much of above is priced in and could easily see sub £1 here in short order.

[orange1] 21/2/2017 23:17

Over in the Netherlands concerns have been expressed about the fact that the encryption of state secrets is in the hands of FOX-IT which since the take over by NCC is in non-Dutch hands.

If this doesn't get resolved (the government want a say in decisions and appointments at Fox Crypto and preemption rights if the company is sold) FOX could lose this important business.

[dontay] 21/2/2017 23:13

iLeeman... i made my views on the resignation of the previous FO without any reasons being put forth for it very clear. Together with the announcement of "significant margin erosion" I thought it smelt to the high heavens! To me the issues were always more than just the loss of three unrelated contracts... and I said so! I also moaned about there being no plan or strategy mentioned, at any time... to address the continuing margin erosion. As for now.. I don't think it's credible to believe that the company have sat on this RNS waiting until a few minutes before the close to release it. There has to be serious reasons behind this timing.It's likely in my view that some sort of trading update with a profit warning WOULD have been planned to be released in a more normal way.... but this together with the cancellation of tomorrow's planned shindig is obviously a very last minute decision. Why?The only reason I can think of is that some particularly damming evidence has just been uncovered today and under corporate governance rules the company had no choice but to rush this announcement to the market regardless of it being just before the close. This makes me wary that not all the bad news has yet been released, it's possible an external investigation of the previous accounting practises may be demanded. I wouldn't touch this company with the proverbial until a bit more light is shed!

[ileeman] 21/2/2017 21:53

@Dontay You make some interesting points, shake up by new FO, previous one has been a naughty boy.

[dontay] 21/2/2017 19:33

I think it's pretty clear that what has happened here is the recently appointed FO has got to work and uncovered the FULL appalling truth, there HAS been serious accounting incompetence and/or irregularities covered up... and that is why all this is now appearing as a big last minute surprise. I previously stated that I believed the previous FO was relieved of his duties rather than innocently resigning with immediate effect and no reason given for it. Smokybenchod preferred to press the ignore button! Profit warnings always come in three's! The recovery process, hoping there IS a way back from this... will probably include the cancellation of the dividend.

[gsbmba99] 21/2/2017 19:32

The scale of the decline in fortune for this business is staggering. If group adjusted EBITDA for the year is now expected to be 20% below the previous range of £45.5m-47.5 that points to £36.4m-38. In 1H17, they had adjusted EBITDA of £21.3m (of which £10.6m from Escrow and £13.1m from Assurance and, presumably, a loss from the registry business). That suggests 2H adjusted EBITDA of £15.1m-16.7. Given we are told that Escrow is on track and that 2H is stronger than 1H, we're looking at about £5m of adjusted EBITDA or less from Assurance (assuming Escrow adjusted EBITDA is a bit stronger than the £10.6m in 1H). That's a 60% sequential decline in adjusted EBITDA from Assurance from 1H to 2H in a market that's supposedly booming. Their consultant utilisation rates in Assurance must be diabolical. The only potential silver lining is that the fundamental issue appears to be having too many consultants not fully utilised. If the business can be rightsized for the current rate of sales growth, profitability should, theoretically, bounce back rapidly.

[ileeman] 21/2/2017 19:29

Yea but u wouldn't be able to react anyway, no matter what time it comes in it goes into auction gaps down.

I am going to hold for a bounce, looks overdone IMO.

[esther1975] 21/2/2017 19:25

But it didn't come in at 7 am. Maybe it should have. Or maybe they should have stated in their last rns. Point is that no pi's had the opportunity to react to the news

[blueball] 21/2/2017 19:23

stay short.

[lizard370] 21/2/2017 19:21

Interesting that a new CFO started on Feb 1st and we now have this news which downgrades the figures announced in the half report in January.How can things change dramatically so quickly, something doesn't add up. This is a well established company with a good reputation in a growing market it should recover but maybe has grown too quickly with acquisitions for its own good? I'm long on this and now paying the price, where's that bottle of scotch...

[ileeman] 21/2/2017 19:11

@Esther

Think it is irrelevant what time it came in, say it came in at a 7am RNS it would go to auction and again you would not be able to trade...makes no difference.

[esther1975] 21/2/2017 19:07

All investments come with risks but to put out a profit warning so late in the day is nearly as low as misleading investers 6 weeks ago. Credibility gone.

[tiltonboy] 21/2/2017 19:00

Also made plenty, and know that I should have been quicker at cutting positions when events unfolded not to plan. Even in funds, where I generally play, poor investments can be made. CDI and DCI have both been disasters, and I should have got out when news turned.

[spoole5] 21/2/2017 18:47

Completely agree, we've all made mistakes and those who say they haven't are lying. I invested at 1.80 and now have to consider whether to wait and hope for a turnaround or sell in the morning and redeploy elsewhere. Luckily it's only 3% of my portfolio so not massive damage, still unwelcome as was making good gains elsewhere. You can see why people stick to funds.

[tiltonboy] 21/2/2017 18:45

I'm not, I've been monitoring the company for months as I like the sector, and at some stage it will be worth picking up. Did pick up a few Blancco and GB.

[mrphiljones] 21/2/2017 18:38

Tiltonboy can I ask does it make you feel better wallowing in other people misery?.....No position here yet unsure whether I will after the second PW inside 6 weeks but pleaseeeee ffs what kinda person gloats....:-(