Shares in NCC slipped 5 per cent after the cyber security specialist warned that full year results would be hit by a £6.9m write-off due to the failed implementation of a new company-wide IT system. This looks a good moment to take profits on a decent buy tip.
NCC had been running the system in its escrow and finance departments since March, but the deployment into its assurance division ran into trouble, prompting the company to pull the plug and revert back to its old system.
Management claims the problems did not impact trading, but they are still booking a chunky write-down against the cost of the system which, when coupled with a £6m investment into a domain project, will shave a chunky 60 per cent off full year pre-tax profit forecasts.
