Ncc Share Discussion Threads

[a2584728] 18/7/2017 15:44

Would be nice to see some positive press tomorrow as well

[mazarin] 18/7/2017 15:15

I agree largely with the above comments and suspect that today's sellers were short term punters, speculatively buying ahead in the hope of a 'positive take' by the market on release of today's news. I reckon we'll soon be getting rather more 'considered' comments from Analysts, once they have had the opportunity to sift through and digest the content of today's Results and scope of the Review. Of one thing I am certain and that is, 'a problem is unlikely to be resolved unless and until it has been recognised as such' and only then can effective steps be taken to fix it. In this respect the current BoD of NCC appear to have made a bold move by facing up to the 'gremlins'. Now, we as investors need to see evidence of the next step and see it translating into new Contracts and sustainable revenue.

[rivaldo] 18/7/2017 11:16

Peel Hunt retain their Buy and 245p target:

[a2584728] 18/7/2017 10:55

Yes this is only going one way imho from here, if I were short here after that update I would be severely worried.

[uapatel] 18/7/2017 09:46

Good reaction to the results. Hopefully start to see some of those big shorts closing, if they haven't already.

[rivaldo] 18/7/2017 08:54

The market certainly likes it. Perhaps because investors now have certainty going forward as to strategy and numbers, with no major (new) surprises.

Forecasts from N+1 Singer are for 8.8p EPS this year, so with those expectations reiterated today NCC are on a pretty cheap rating for the sector given the prospects. Even the 4.7p dividend isn't a bad yield at the current price.

[mazarin] 18/7/2017 08:38

The Government's recently announced legal duty of all Companies to protect customer data in the future and their need to show that they have taken all reasonable measures to protect themselves or risk prosecution will undoubtedly impact and help this Sector. I liken it to the merits of being a 'shovel maker' in a 'Gold Rush'.

[hew] 18/7/2017 08:21

A heavyweight to start the day. Two reasons to stay in emerge for me. First, as above, the underlying strengths - respected in, trusted by, and needed by the market, with the new team seeing a future and maintaining the dividend - and, equally important, the analysis makes me believe - "convinces" a touch too strong - that issues have been understood, a grip taken, and profitable financial structuring is being put in place.
NAI

[mazarin] 18/7/2017 08:18

Favourable market reaction, so far...!

[mazarin] 18/7/2017 08:14

There's a lot to absorb in the SR that will require more than a 'quick scan' to fully assess and understand its future implications on the business.

[a2584728] 18/7/2017 08:00

Hahaha and 2.5p drop.

[gersemi] 18/7/2017 07:52

The spike at yesterday's close strongly suggests the market was aware of the contents of today's RNS

[a2584728] 18/7/2017 07:50

Yes. Cash for non core activities and re focuses on core business. The past should be behind us. Interested in what the market will think of it. Masses of buyers or sellers

[uapatel] 18/7/2017 07:32

Should add liked the divestment of some of the outlying business units and refocus on core business elements. This should help with debt reduction.

[uapatel] 18/7/2017 07:25

Looks good to me. Confidence given by retaining the dividend. Hopefully see the share price recover over the rest of the year.

[a2584728] 18/7/2017 07:22

Yes agreed. The debt is clearly serviceable and being reduced. There is a lot of positive things going forward and I quote "our business is not broken"

[9degrees] 18/7/2017 07:20

The horrific past was priced into the shares when they fell from about £3.60 to £1 in February when the bad news was first announced.That was a drop in value of 71% and only marginally picked up since the to the £1.60s . If they do what they propose then great upside value here

[a2584728] 18/7/2017 07:08

Looks good going forward to me. Debt down nice divided and well thought of in the market. Further improvements will only improve the situation. The divi shows confidence moving forward. The only way is up

[a2584728] 18/7/2017 07:02

Hahahaha it's late. Must be bad lol must be good lolol

[mazarin] 18/7/2017 07:01

I had to go to the LSE to get RNS, headlines as follows :-

Year end results

· Group revenue up 17% to £244.5m (2016: £209.1m), organic growth 3% excluding impact of FX and acquisitions

· Operating loss £53.4m (2016: profit £11.4m)

· Adjusted* EBIT £27.5m (2016: £39.7m)

· Individually significant charges of £71.0m, including intangible asset write downs of £62.0m

· Adjusted* EBITDA £36.2m (2016: £45.0m), in line with revised expectations

· Adjusted* basic earnings per share 6.7p (2016: 11.8p)

· Basic loss per share 20.4p (2016: earnings 2.5p)

· Net debt reduced to £43.7m from half year level of £48.8m

· Total dividend maintained at 4.65p per share with final dividend of 3.15p per share

· Completed two small US based bolt-ons

· Significant changes to the Board



Strategic Review

· Markets and customer views of NCC services continue to be positive

· NCC scores highly against the most important key customer purchasing criteria

· Escrow remains an attractive business and stabilises the Group

· Assurance focus on cyber security

o Web Performance and Software Testing businesses to be sold

· Business needs better internal organisation - changes to operating model underway

[lizard370] 17/7/2017 19:33

yes we need some very positive news to shake off the nearly 8% of shorted stock, who clearly have a different view of things.GLA!

[a2584728] 17/7/2017 19:07

Agreed, no need to set alarm as it will either fly or tank lol

[ilovefrogs] 17/7/2017 18:47

yep, could be a big day for NCC tomorrow. Good luck everyone......!

[gsbmba99] 17/7/2017 17:38

I'm still hopeful that there is considerable upgrade potential for 17/18 and 18/19. Compared to a year ago, it looks like 17/18 revenue is -10% but EPS is -50%. That suggests that the margin issues they've had this year are largely baked into next year as well. If the real reason that profitability this year has taken a nosedive is too many consultants having been hired and being paid but not generating billable hours due to delayed contracts, lower profitability shouldn't be a permanent issue. At least, that's my theory based on what previous management said.