Ncc Share Discussion Threads

[whatever13] 18/1/2018 18:24

These are the worst ever numbers from NCC Group since they joined the market which the market has spotted. They always produced 15-20% organic growth year in, year out. Revenue growth was pathetically low in Escrow and not even double digit in Assurance where the market is the strongest it has ever been. Along with an expanded cost base delivering “strategicR21; change that was in play long before the change of management it is clear the company is not being run well but is full of ego and in fighting. The best hope is PE or another IT services company take them over quickly.

[jerseyman1] 18/1/2018 16:40

Mazarin, looks to me like some shareholders have taken the view that this is six months plus away from decent recovery in financial performance and have decided to go elsewhere. I agree the H1 numbers were OK, but management were playing down the second half performance in the presentation, and some investors believe them! Or maybe the one to one presentations from Messrs Stone and Palser left the recipients as underwhelmed by them as individuals as I am!Think it will drift back up in a week or two once those who wish to have rearranged their positions. It's still a very strong market and sensible actions have been taken resulting in increased revenues, improved margins and contained costs.

[mazarin] 18/1/2018 16:17

Why is this so 'slammed back' since Tuesday's update surely it was not that bad?

[1r0n1cer] 18/1/2018 13:41

I think it's a good move, I've topped up as well, this is a share that should be trading above 250p and it will get back up there within 2018 (at least)

[a2584728] 18/1/2018 09:51

I am starting to add again as funds free up.

[markth] 17/1/2018 16:53

vvvvv finger poised above buy button.

[markth] 17/1/2018 16:52

You know what Peel Hunt rhymes with, right?

[jerseyman1] 17/1/2018 12:18

I hope you are right gsbmba99, not wanting to hang the new CEO on forecasts so soon after his arrival. On the positive side the bathtubbing of the 2017 results should mean we don't get the usual write offs that follow a new CEO arriving.....

[gsbmba99] 17/1/2018 11:21

I read through the conference call transcript and it seemed like they were very confident of being able to meet expectations. Cost growth H1 into H2 should be pretty low which, if combined with solid revenue growth and newly enhanced margins, should result in a good outcome. Maybe market disappointed at no upgrades? Seems unlikely Chmn and FD would want to saddle new CEO with new numbers before getting feet fully under the desk. I still think forecasts look unusually achievable. Rev growth 19E vs 18E looks to be about 0%. That doesn't seem likely.

[mazarin] 17/1/2018 10:14

Looks like 'the market' is less impressed today, down 2.6% already

[a2584728] 17/1/2018 09:40

I liked the RNS growth all over the place and savings in certain areas, we will reap the rewards in 6 months time.

[rivaldo] 16/1/2018 12:07

Peel Hunt reiterate their Buy and 275p target:



And the respected Techmarketview are positive - I agree with them that today's report sees good progress overall by NCC. Hopefully the next period's results will see continuing increased revenues as against largely stable costs of expansion as flagged today. The planned disposal could give the share price a lift when it happens:



Extract:

"Tuesday 16 January 2018

Resurgent NCC Group grows H1 revenue 4%

.....All in all we think NCC is now making good progress after its poor performance last year (subscribers to our SecureConnectViews research stream can access our Cyber Security Supplier Prospects 2018 report here) but much will depend on how well demand for its core cyber security and business continuity services holds up over the next 12 months."

[mazarin] 16/1/2018 09:23

Jerseyman1 hopes the presentation to Analysts may be more helpful to 'the market' than this rather 'lacklustre style' as contained in the RNS and I have to agree.

[davwal] 16/1/2018 09:01

Had naively hoped business might have exceeded management expectations given the apparent appetite for the services provided due to the series of security scares during the period. The competition certainly seems to have prospered. Oh well, maybe next time...

[mazarin] 16/1/2018 08:42

Early market response - appears somewhat ambivalent

[masurenguy] 16/1/2018 07:35

RNS Number : 9447B
16 January 2018
NCC Group plc

First half results reflect significant improvements to revenue and gross margins since H2 in the prior year and deliver financial performance in line with the Board's expectations. The financial performance of the Group was in line with the Board's expectations and represents a firm recovery from the weak second half of the prior year. We delivered continuing adjusted operating profit of £14.1m (H1 - 2017: £16.2m and H2 - 2017: £9.2m). Continuing revenues grew by £7.9m (7.2%) to £118.2m. Our retained organic Assurance businesses delivered double-digit growth across the combined 4 geographies (UK, North America, Netherlands & Denmark). The Escrow division also returned to growth with revenue 1.8% higher than the prior year period (2.1% excluding the impact of FX rates).

We improved GM% in both divisions and at 39.4% for the Group as a whole, GM margins were up on both the first half (36.8%) and second half (35.4%) of the prior year. The benefits of growth and improved gross margins were offset by the impact of increases in overheads, depreciation and amortisation that were largely committed in the first half of the prior year. So while adjusted EBIT margin rose by 3.3% to 11.9% compared to the second half of the prior year (8.6%), this represented a year-on-year fall of 2.8% (H1 - 2017: 14.7%).

We have made good progress in implementing the findings of the Strategic Review and also the associated work on a new Target Operating Model (TOM). During the Period our efforts have focused on our sales teams and go-to-market strategies. We expect the changes to be fully deployed by the end of the current financial year to support growth and margin initiatives in the next financial year.

We have also initiated a number of new improvement projects to improve our internal business processes. These projects are both short and long term in nature and we expect benefits from them to gather pace in the second half of the year to support margin expansion and operational leverage in the next financial year. We are already seeing benefits in terms of the timeliness and quality of reporting of management information with the deployment of a new consolidation and reporting tool and working capital is showing the early benefits of increased focus and active management. We continue to develop our technical and specialised service offering. One such example in the period was the launch of our unique and highly sought after CENTA service (Centre for Evolved Next Generation Threat Assurance) as part of our UK Assurance business. This was made possible with an investment in a new team of highly capable individuals with experience operating at the highest level with regulators and regulated industries, as well as with central governments around the world. The offering generates revenue in its own right and the halo effect also helps open a number of boardroom doors.

We have also been reviewing how we manage and develop our people. This has included Group-wide workshops aimed at developing a set of shared values and evaluating the need for additional management training and support as we transition to the new TOM. While the strength of the market continues to create talent retention issues in a number of our locations such as California, on a global basis employee engagement remains strong and employee turnover remains at a similar level to prior years. Finally, the processes to sell the Web Performance and Software Testing businesses are well advanced. We still expect to announce the disposal of each in the second half of the financial year.

The Board has reviewed business performance in the first half of the current financial year and the fall in earnings compared to the first half of the prior financial year. While mindful of the need for investment over the next few years, the Board is confident in our prospects and hence recommends that the dividend is maintained at the current level.

An interim dividend of 1.50p is therefore being recommended by the Board. This is in line with the Interim Dividend in the prior year although adjusted EPS is still significantly below the level achieved in 2016, when the current level of dividend was first paid. The dividend policy will remain under review.

Full H1 results statement:

[qs99] 16/1/2018 07:17

uninspiring IMO

[mazarin] 16/1/2018 07:14

Today’s results show Double digit growth in Assurance in all four geographic areas (UK, North America, Netherlands and Denmark) and Gross Margin profit of 39.4 % across the business. Interim Dividend of 1.5p to be maintained. Talks to sell Web performance and Software Testing (formerly Accumuli) reported to be at advanced stage and should be disposed of by Second half of current financial year. The New CEO to be in place by Dec 2017, remember these results report to Nov 17.

[cerrito] 15/1/2018 22:01

Checking to see what to look for in the RNS.
I trust that they have a webcast presentation so we can get to see Adam Polser.
We are due news on sale of Web Performance and Software Testing .
Assume they have made the E10m payment due to Fox acquisition and £4m for outstanding contingent payments-both due by year end.
I have two forecasts for profit this year one £29m odd and the other £19m..does anyone have a feeling for this?
Be interesting what they say about new sales and incentives strategies.

[mazarin] 12/1/2018 10:14

I'm expecting NCC Half year results(to 30th Nov 17) to be announced next week on 16th Jan 18

[a2584728] 09/1/2018 10:15

Yes. I understand that the underwriting business is starting to flourish as well. No advice intended

[a2584728] 08/1/2018 11:56

Needs something to break out of this trading range