Shares in NCC (NCC) tumbled more than a third after the FTSE 250-listed cyber security group warned that setbacks in its key assurance business (see graphic) would weigh on profit growth in the six months to November. Management said it was too soon to estimate the impact on NCC's full-year figures, but profit growth remains on track.
Both assurance and escrow sales rose in the four months to 30 September, sending total organic revenue up 21 per cent. However, the group suffered from three contract cancellations, the deferral of a large contract and issues renewing certain managed services relationships.
Net debt shrunk by more than a quarter to £47.5m. Coupled with a total borrowing facility of £115m, that leaves ample scope for acquisitions. Broker N+1 Singer expects a significant second-half weighting to profits and reiterated its EPS forecast of 12.6p for the current financial year to May 2017.
