Ncc Share Discussion Threads

[boozey] 20/6/2018 17:20

For a company in the fastest growing of industries NCC seem to score endless own goals and undermine investor confidence. Recent business performance has been a shambles and a reflection of a chaotic boardroom. A CFO leaving unexpectedly is never a good sign and a reduction in share price today is an inevitable result. Too many egos on the Board and not enough men or women of substance.

[ynwa1] 20/6/2018 14:01

Very unpopular person (not as unpopular as "ego" Stone) with all staff. Rumour is all his senior team left and he lost control of trade debtors. Has a history of stropping off when not made CEO as at Scapa and is seen as a sale prevention officer with little commercial know how by the sales people. Escrow head is expected to be gone soon as well due to losing his team.

[a2584728] 20/6/2018 08:58

Company trading in line and has great prospects. Looks good to me. Need a new up coming CFO next to take us forward

[7ran5ac710n] 20/6/2018 08:19

Usual inane platitudes combined with the CFO's very short tenure - material risk - massage results up this year, big bath next? Of course, IMHO.

[cerrito] 20/6/2018 07:41

rivaldo, I assume everyone expected him to move on and from what I can see he did a good job; I would be pleasantly surprised if the replacement is in post by the end of August and let's hope some handover can be organised.

[rivaldo] 20/6/2018 07:17

Good to see the CFO is leaving on amicable terms, and with sufficient time in hand to hand over to the new appointee. But more to the point, there's also hidden in the RNS these encouraging comments about trading and outlook:

"I leave behind a business which is in good shape and with excellent prospects."

The Board confirms that the Group continues to trade in line with its expectations and will report Preliminary Results for the year ending 31 May 2018 on 17 July 2018."

[muddyw] 16/6/2018 11:51

Wish I had a 150 average! Can see a long-term improvement, but reckon it'll go down before it goes up - will see what these year-end results bring and be ready to sell out on the downslide. If at all I'll get back in before the next year's results but even that may be too soon. And who knows what the market will look like by then.

[a2584728] 08/6/2018 11:42

I am still a bull here and keep adding below 200p. My first tranche was 190 I then bought just over 110p so have quite a nice average now. Still think that durability will make this company great again

[muddyw] 29/5/2018 20:36

I'm not sure about your timelines Rich? The company was privatized almost 20 years ago (1999) and performed well ever since - it was FTSE 250 a couple of years ago. It's only about a year ago when it 'lost it's way' due to a couple of profit warnings that led the market to freak out and the board to follow suit.

hxxps://www.nccgroup.trust/uk/about-us/what-we-do/history/

The client base hasn't changed in 20 years, but being the only UK company offering Escrow (for example) has. If anything they'll find it harder than ever to deliver organic growth now, even before they lost their leadership and replaced it with Jerseyman's favourite consultant and a CEO the market didn't seem impressed by.

The share-price crash necessitated drastic action, and other than changing the CEO, I haven't seen the results of any. This is what has me worried in the short, medium and long term!

[richjp] 28/5/2018 14:31

muddyw, I got in at 190P so I am ahead even if not by too much. I suppose in that position I am probably able to be more relaxed than someone who is still under water.

Forgive me if everybody already knows this, but this company was originally the state owned National Computing Centre, primarily known in the past for its escrow business. I think that because of that it will have a stable base of blue chip clients. The company has clearly lost its way since being privatised however with a sound balance sheet and an established customer base I think the medium to long term potential is good.

[jerseyman1] 28/5/2018 11:39

The (still Executive) Chairman came in acting like a typical consultant, slagging off the previous management and claiming he could see the way forward. Unfortunately for all concerned, unlike consultants generally, he is still there and has to implement his prescription for turning it around. I hear that he "looked good on paper" but has failed in a number of his promises. As I have nothing to give me evidence otherwise one of these failings may be the recruitment of what looks to be a reclusive CEO.I too will await the results and other information in July with my finger poised on the Sell button.

[muddyw] 28/5/2018 08:20

What did you buy in at Rich? Obviously the market over-reacted to the original profit warning, so if you got in at 90p, you're on to a winner. I've held for longer than that so still need the 250p ceiling to be broken to break even.

PS - I wouldn't classify over a year as rushing into anything? They should have come up with a strategy in half that at the most (and the costs for all the 'experts' they needed to tell them what to do would have been included in the half year results).

These year end results should demonstrate some increases in profitability (for the areas they still have), or at the very least the (apparently unaffected) Escrow division should start delivering the targets they've been missing year on year?

I'd love to be surprised when the results come out, but as a long-term shareholder who's allergic to 'cutting their losses' I can't help but be concerned that the people brought in to 'save' the company don't seem to be having much effect!

[richjp] 27/5/2018 18:48

I am reasonably happy with progress so far. I bought in to it as a recovery play and it is doing OK for me to date.

I feel it can take a bit of time to figure out a new strategy in these situations and I would rather that they got it right than just go rushing in to new initiatives.

If it can get to that broker target within the next twelve months that will do me nicely.

[jerseyman1] 27/5/2018 14:11

Muddyw I can see your point. I thought the CFO was a sensible appointment, but thought at the time the (still Executive) Chairman was a typical consultant poseur and have seen nothing to convince me otherwise since. The new CEO is severely underwhelming so far. Its all set up for a big reveal at results time, hopefully it will be inspirational......

[muddyw] 27/5/2018 10:41

Not sure Jefferies recommendation should be given too much weight - those same claims about cyber security being a growth market / a boardroom priority etc have been made repeatedly over the last few years after Russian hacking / NHS / Wannacry etc etc. Never has any tangible effect on the revenues, nor therefore the share price?
I'm more worried about the fact that it's been about a year since they announced an 'emergency plan' to review strategy and have presumably spent a lot of money doing so, yet nothing seems to have been achieved, other than eventually selling off parts of the business for not very much money!
When will the benefits of all this expenditure / streamlining manifest? Wouldn't be surprised to see more asset stripping in the next FY. Am a nervous holder but will be hovering over the sell button come year end results...

[robow] 25/5/2018 10:54

Kames increasing

[cerrito] 24/5/2018 22:42

Trying to work out if this is more or less than expected; I see that Assets held for sale in the Interims were valued at £17.8m and total sales proceeds have been less.
In any event good that this has been tidied up and debt will reduce by this £3.6m in addition to the £7.5m from the web performance business, even if the bank loan at libor +1.1pc is not expensive and their debt position is comfortable.
I guess the market rather yawning at the news makes sense.
I note that in the March 28 RNS when they sold the web performance business they gave us an inline outlook and nothing today. I have chosen not to read anything into this and we will know on July 17.
I have no immediate plans to buy or sell.

[masurenguy] 24/5/2018 12:56

RNS Number : 2150P
NCC Group PLC
24 May 2018

Sale of Software Testing

NCC Group plc (LSE: NCC, "NCC Group" or "the Group"), the independent global cyber security and risk mitigation expert, is today announcing the sale of its Software Testing business to QualiTest Group ('QualiTest'), a portfolio company of Marlin Equity Partners. The Group has completed the sale of the Software Testing business to QualiTest Group for immediate cash consideration of £3.6m on a cash and debt free basis (subject to any final post-completion adjustments to working capital).

NCC Group's Strategic Review, which completed in July 2017, concluded that its Software Testing and Web Performance businesses had little strategic overlap with the Group's broader cyber security and business continuity activities and therefore would be sold. It was management's view that both businesses would benefit from operating within companies whose core activities were more closely aligned to their own. Following the sale of the Web Performance business on 28 March 2018, the sale of Software Testing therefore completes the divestment process enabling the Group to focus on its two core divisions, Assurance and Escrow.

At the end of April 2018, net assets attributable to the Software Testing business (which are subject to post-completion adjustments to working capital) amounted to £9.7m, which included £8.0m of goodwill from the original acquisition of Software Testing in 2009. In the eleven months to the end of April 2018, Software Testing contributed £0.7m of Adjusted EBIT(1) to the Group's performance. Software Testing was designated as a discontinued activity in the Group's Interim results that were published on 16 January 2018, given the earlier decision to sell the business. The sale therefore has no impact on expected full year Adjusted EBIT from continuing activities and only an immaterial impact on total full year Adjusted EBIT. The cash proceeds will reduce the Group's net indebtedness.

The Group expects to report its full year results, for the year ended 31 May 2018 on 17 July 2018.

[a2584728] 23/5/2018 13:36

About time this made a break out through the 220 barrier

[jerseyman1] 11/5/2018 09:22

Avast and Sophos are very different businesses to NCC, all serve cyber security market, but first two are package, standard product based aimed at simpler applications, whilst NCC is more specialist consultancy aimed at enterprise implementation. Not saying one better than the other, but different in same general market. Hopefully Avast and Sophos thrive and NCC comes along in slipstream, along with producing clarity over outstanding disposal programme, vision from new(ish) CEO and some continued improvement in financials. NCC is recovering from profit warnings last February, new Chairman, CEO and CFO in same period. Shares have been 80% higher than now within last two years, hopefully they can regain that level soon.

[masurenguy] 11/5/2018 08:12

Avast commenced trading on the LSE this morning after their IPO. They are now the largest (by market cap) and also the third cybersecurity company to be listed on the LSE, following NCC and Sophos.

[a2584728] 10/5/2018 10:40

About to make another run up

[1r0n1cer] 09/5/2018 09:38

moving average cross, buy time

[rivaldo] 09/5/2018 08:16

Reports this morning that Deloitte will spend another $580m on its own cyber-security defences:



I note that Deloitte "provided financial due diligence" for NCC on the Fox-It transaction, so Deloitte already have a good relationship with NCC.

Given the way that Fox-It went, Delotte may feel they owe NCC some work.....