Software & IT services company NCC has had a very rocky ride lately. Shares peaked at over 350p in Sep 2016, and have since fallen to 89.60p as at writing.
The shares fell sharply when it reported in October: “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.”
This seems to smack not so much of individual setbacks, but of some kind of systemic problem.
The shares declined further when they released their H1 trading statement in Dec.
On 11 jan 2017, Brian Tenner was appointed CFO.
On 19 Jan 2017, they issued their H1 , and the shares dipped a little. They also announced that the Chairman, Paul Mitchell, intends to step down on 31 May 2017.
Another plunge in the share price occurred on 21 Feb, when they issued their trading update and started a strategic review. The share price was ~180p beforehand. As you can see, the company has lost half its value in 2 days.
With the benefit of hindsight, all that boardroom shuffling looks suspicious.
A BB (bulletin board) poster said this:
Looks like they have been massaging their figures over time to continue high growth story.
I think that the poster is likely to be proved correct.
I am wondering if the accounts will be restated, too.
Stay safe out there.