Announcing a major profit warning shortly before markets closed did not shelter NCC (NCC) from a substantial sell-off in its shares. During the two days following the announcement, the share price dropped almost 60 per cent.
IC TIP:
Sell
at
95p
Full-year cash profits are now expected to be 20 per cent lower than previously expected due to poor performance in the large assurance division. Although this part of the business has grown rapidly through acquisitions, it has struggled to keep client contracts - particularly those of higher quality - which has dented revenue and narrowed margins.
