Ncc Share Discussion Threads

[igoe104] 20/10/2016 08:14

FFS, over a £1 down.

A years worth of share price building, down the drain in 5 minutes.

[masurenguy] 20/10/2016 07:28

RNS Number : 9913M
NCC Group PLC
20 October 2016

Trading update for first four months

Group revenues increased by 36% (September 2015: 48%) to £79.6m (September 2015: £58.5m) with organic growth of 21% (September 2015: 17%). Both the Assurance and Escrow divisions showed strong organic revenue growth, up 25% and 4% respectively, despite the first four months of the financial year typically being the Group's quietest trading period.

The Group however experienced a number of setbacks in the Assurance Division including three large unrelated contract cancellations, a large contract deferral and difficulties with some managed services contract renewals. It is too early to quantify the likely impact in the current financial year, as the Group is taking the necessary action to mitigate these developments. However, the Group's rate of growth in profitability will now be more biased towards the second half of the year than initially expected, but remains in line with the Board's expectations.

Rob Cotton, Group Chief Executive, comments: "Overall, we continue to make good progress across the business with strong organic growth. However, we have been hit by a number of unrelated adverse developments in the Assurance Division that will have an impact on profitability between the first and second half of the financial year. Despite this, we will continue with our measured acquisition strategy and anticipate acquiring additional boutique cyber security consultancies over the next few months.

We operate in a fast growing market and have forward order books and renewals of £108.8m, up from £71.9m this time last year. We continue to take the necessary action to mitigate this period's setbacks and remain on course to sustain our double digit organic revenue growth. The Assurance Division continued to perform strongly with a 44% increase in revenue (September 2015: 57%) to £66.9m (September 2015: £46.6m). Excluding Fox-IT, organic growth was 25% (September 2015: 19%).

However, the loss of three major contracts along with difficulties with contract renewals within the managed security services business unit (formerly Accumuli plc) is causing a significant erosion of margin. The Group is working to remediate this position. Fox-IT continues to be slowly integrated into the Group but the lumpy nature of its product revenues and a large contract deferral allied to complex Government relationships makes this process more challenging. However, the Group is looking forward to being able to push further Fox-IT products and services into new markets. The Assurance Division's combined order book and renewals base currently stands at £84.2m (September 2015: £50.2m) for the year ended 31 May 2017. This includes web performance and managed security service renewals of £17.7m and £11.5m for Fox-IT.

The Escrow Division continued to perform strongly. Revenue grew by 4% (September 2015: 8%) to £11.2m (September 2015: £10.7m) and renewals are now forecast to be £21.0m for the current financial year (September 2015: £19.0m). Group Escrow termination rates continue to be around 11%. The global verification order book continues to be solid, with good prospects. It now stands at £3.6m (September 2015: £2.7m). In the UK revenue, as expected, declined by 2% (September 2015: 8%) following a notably strong performance in the equivalent period last year. However, the Group expects a normal and positive performance for the full year. In North America, revenue grew sharply by 25% (September 2015: 9%) and in mainland Europe, the smallest part of the Escrow Division, revenue grew by 15% (September 2015: 7%).

The Group acquired Palo Alto based Payment Software Company Inc. ("PSC") on 29 September 2016 for a maximum consideration of $18.75m in cash. The Group's net debt decreased, as expected, to £47.5m (September 2015: £65.3m) against a total debt facility of £115m. The Group expects to report its half-year results, for the six months to 31 November 2016 on 19 January 2017."

[rivaldo] 20/10/2016 07:23

Profitability still in line overall:

"However, the Group's rate of growth in profitability will now be more biased towards the second half of the year than initially expected, but remains in line with the Board's expectations."

And "Overall, we continue to make good progress across the business with strong organic growth". Plus NCC "remain on course to sustain our double digit organic revenue growth."

Revenues surging ahead 36% in the quietest trading period, especially in the USA.

Plus order books also surging:

"forward order books and renewals of £108.8m, up from £71.9m this time last year".

And a nice decrease in debt.

However...certain contract cancellations, deferrals etc have made the year end outcome more dependent on H2.

Certainly mixed. But overall the business seems to be in very good health, with excellent growth tempered by some one-offs this half.

[effortless cool] 20/10/2016 07:05

Ouch! Nasty profit warning this morning.

[jontyone] 10/10/2016 18:23

And a couple of offices opening Mid/Far East.

www.zawya.com/mena/en/story/NCC_Group_Continues_Global_Expansion_by_Launching_in_the_Middle_East-ZAWYA20161009110408/

[igoe104] 08/10/2016 08:51

Cybersecurity firm plans continued growth in region

Waterloo Region Record
By Brent Davis
KITCHENER — Every day, it seems, there are more and more devices and gadgets going high-tech.
Whether it's an autonomous car or an Internet-connected thermostat, these things are being introduced to save time and make our lives easier.
But they may prove to be just as appealing to cybercriminals, and it's not an exaggeration to suggest that the possible impacts range from simple inconvenience to potential life-and-death scenarios.
"If we don't secure them to the best of our ability, I think the potential for consequences is incredibly high," said NCC Group vice-president Ian Robertson.
The Manchester, U.K.-based firm specializes in cybersecurity and risk mitigation, employing more than 1,850 people at more than 30 offices around the world.
Robertson heads up the Canadian operation, located in the Breithaupt Block in Kitchener, which focuses on the security of embedded devices.
That's a "ridiculously broad" classification, Robertson said, which can include everything from phones and cars to thermostats and smart toasters that contain some type of computer system.
Hacks could expose personal or financial information, could open the door to attacks on other wireless devices, or could allow a crook to hijack the device until a ransom is paid.
Security is even more critical when it comes to things like cars or medical devices, Robertson said. "You quite literally have human lives on the line."
Dedicated to product security research and development, the Kitchener office opened just over a year ago, and has about ten employees.
"We're realistically going to continue to grow as we're able to find talent and build out," Robertson said.
The local office will probably double in size over the next year or so, he said. As they outgrow the current location, a move somewhere within the region is likely.
Robertson said an abundance of talent and strong post-secondary institutions in the area were factors in NCC Group's decision to come to Waterloo Region. There's also a lot of work in the cybersecurity field taking place here, and many of NCC Group's local employees, including Robertson, previously worked with companies like BlackBerry.
"We've learned so much over the years from 30 years of desktop computing," Robertson said. "We're bringing these lessons around and looking to apply them deeply

[rivaldo] 04/10/2016 22:57

Good to see Aviva increasing their stake nicely - a week ago they had 16.92m shares, and now they have 17.36m shares, or 6.29%:

[rivaldo] 03/10/2016 23:33

New highs now. Looks like the market took a couple of days to react to the acquisition - and it likes it.

A favourable view on the acquisition from the respected Techmarketview:



Extract:

"Following some large and embarrassing data breaches, US companies and institutions are working hard to renew their infrastructures and systems, wrestling with legacy problems and at the same time meeting ever higher expectations for customer experience. NCC will be looking to capitalise on this opportunity, cross-selling more of its services portfolio into US companies."

[rivaldo] 29/9/2016 23:04

Here's the company web site:



Should be terrific cross-selling opportunities:

"PSC’s Clients include:

• Major financial institutions
• Domestic and Global Retail Organizations and Manufacturers
• Internet merchants, retailers, direct marketing and mail order
• Service providers who accept, store or transmit payments
• Payment service organizations
• Third-party processors
• ISOs, merchant and payment service providers
• Accounting and audit firms
• Software publishers
• Technology companies
• Startups and emerging technologies"

[seans66] 29/9/2016 17:50

Yes looks a good buy, disappointing market reaction though.

[rivaldo] 29/9/2016 15:02

Even better:

- "approximately 85% of the revenue annually repeating"

- "Earnings enhancing and financed from existing debt facilities and internally generated cash flow"

Initial $15m cost for $1.6m annual EBITDA strikes me as extremely cheap in this sector.

[rivaldo] 29/9/2016 14:44

Big step into the USA with the earnings-enhancing $18.75m acquisition of a Silicon Valley cyber-security and payment consultancy - looks very good news:



"Rob Cotton, NCC Group Chief Executive, said:

"This earnings enhancing acquisition is part of our strategy to acquire services-led businesses in both Europe and North America, to complement our geographical and technical presence.

"PSC is one of a very few companies that can provide expert services and solutions to organisations that require specialist compliance, consulting and cyber security testing services in the substantial and growing global payments industry.

"The addition of PSC, with its quality management team, is an extremely good fit with the rest of our cyber security capabilities. Its Board level relationships provide us with an opportunity to improve our customer penetration and bolster our global capabilities, particularly in the US."

[igoe104] 29/9/2016 12:45

Dominion Registries Partners With NCC Group to Provide Threat Monitoring and Alert System For Dominion’s Top-Level Domains.

[masurenguy] 29/9/2016 08:21

New ATH this morning !

[aylingd] 26/9/2016 09:49

Anybody have a view on whether NCC might be interested in Corero (CNS). They seem to have an interesting Firewall product that is starting to sell well.

I not invested there as they are too small for me & seem to be struggling to scale up & show a profit but maybe as part of a much larger group they would do better.

D.

[seans66] 25/9/2016 21:23

Mentioned in the Tempus column in the Sat Times this weekend as part of a piece on quality Uk tech companies.

[igoe104] 23/9/2016 08:06

Bugcrowd Partners With NCC Group to Simplify Access to Bug Bounty Programs for Enterprises


SAN FRANCISCO, CA--(Marketwired - Sep 22, 2016) - Bugcrowd, Inc., the pioneer and innovator in crowdsourced security for the enterprise, has announced that it is working with NCC Group to provide customers with a simpler way to include bug bounty programs in their cyber security strategies. NCC Group's clients will now be able to take advantage of unified bug bounty solutions that include programs run on Bugcrowd's platform.
"Bugcrowd is dedicated to providing an industry-leading crowd security platform with the highest quality, diverse, and skilled crowd," said Casey Ellis, CEO and founder of Bugcrowd. "The combination of Bugcrowd's platform and NCC Group's trusted expertise will allow organizations that rely on NCC Group for their cyber security to get even more value."
"It is critical for organizations to include the right set of capabilities in their cyber security strategy and bug bounties have become a critical component of a modern strategy," said Nick Rowe, Chief Operating Officer at NCC Group.
NCC Group will offer bundled bug bounty solutions that will include Bugcrowd's platform Crowdcontrol™, access to the security researcher crowd for private, on-demand and public bug bounty programs, and NCC Group's existing bug bounty services. These services are provided by experienced NCC Group security consultants who address all incoming reports and work hand-in-hand with the client's security team throughout the full-lifecycle, from initial report to final resolution.
About Bugcrowd
The pioneer and innovator in crowdsourced security testing for the enterprise, Bugcrowd harnesses the power of more than 37,000 security researchers to surface critical software vulnerabilities and level the playing field in cybersecurity. Bugcrowd also provides a range of responsible disclosure and managed service options that allow companies to commission a customized security testing program that fits their specific requirements. Bugcrowd's proprietary vulnerability disclosure platform is deployed by Tesla Motors, The Western Union Company, Pinterest, Barracuda Networks and Jet.com. Based in San Francisco, Bugcrowd is backed by Blackbird Ventures, Costanoa Venture Capital, Industry Ventures, Paladin Capital Group, Rally Ventures and Salesforce Ventures. Bugcrowd is a trademark of Bugcrowd, Inc. Learn more at www.bugcrowd.com.
About NCC Group
NCC Group is a FTSE 250 listed global expert in cyber security and risk mitigation, working with businesses to protect their brand, value and reputation against the ever-evolving threat landscape. With knowledge, experience and global footprint, are placed to help businesses identify, assess, mitigate and respond to the risks they face. The company is passionate about making the Internet safer and revolutionising the way in which organisations think about cyber security. Headquartered in Manchester, UK, with over 30 offices across the world, NCC Group employs more than 1,850 people and is a trusted advisor to 15,000 clients worldwide

[seans66] 21/9/2016 14:06

New highs. Love to know where this share price will be in 3-5 years. Probably taken out by a bigger player.

[rivaldo] 20/9/2016 08:53

NCC are mentioned as a possible home for ARM takeover cash by an investment director at AJ Bell:



"One option is look at some of the remaining best-of-British technology plays, even if they won’t in most cases offer exposure to the sort of dominant market position or investment themes that ARM did....

...“Cyber-security is a common theme that provides potential homes, with FTSE 250 pair Sophos and NCC both a possibility."

[rivaldo] 16/9/2016 08:19

Great rise yesterday - looks like new highs now (just!).

I wonder if this was due to the huge publicity for the Great Firewall to be built in the UK via GCHQ etc. Lots of cyber-defence work there for major players like NCC I'd have thought:



NCC have links with GCHQ going back a while now, for example:

[rivaldo] 15/9/2016 13:31

NCC are mentioned favorably today in Shares magazine, within an article entitled "What to do with your ARM cash":

"Cyber security is a common theme that provides potential homes for ARM cash, with
FTSE 250 pair Sophos (SOPH) and NCC (NCC) both popular choices among investment experts."

[seans66] 08/9/2016 21:39

This is my best performing share alongside PAYS. Wish it's my biggest investment. I certainly plan to hold both a long time.Getting out of XLM was a big mistake, despite the decent profit I took.

[igoe104] 08/9/2016 11:28

Any weakness in the share price these are well worth a top up.

these are my biggest holding long-side JLG, SCT. XLM.

[seans66] 07/9/2016 14:35

Or it will get bought out? Either way a big premium to current share price

[igoe104] 07/9/2016 11:29

These are kicking on now, I got a feeling business is thieving for NCC, especially with all the worldwide cyber problems.

This is a great long-term hold in my eyes, I can only see in keep going up and up.

5 / 6 years I think these will be over £10.