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Shares in UK cyber security company NCC dropped by 29 per cent for the second consecutive day on Wednesday, after the company issued a profit warning and cancelled an investor day at short notice.
A string of analysts downgraded the company this morning after the company cancelled a capital markets day at less than a day’s notice.
NCC announced on Tuesday afternoon that problems at its assurance division – which had already prompted one profit warning in December – would drag full-year earnings before interest, tax, depreciation and amortisation 20 per cent lower than the bottom of its previous forecast.
Shares in NCC dropped 29 per cent in the last fifteen minutes of trading on Tuesday, and at publication time were down a further 29 per cent, to 90p.
The company, whose market capitalisation hit £1bn last March, has seen almost three quarters of its value wiped out over the last twelve months.
NCC said it will launch a “comprehensive review” of its strategy, on which it will provide further details by its preliminary results in July.
Shore Capital analysts Robin Speakman and Ben McSkelly said the review is likely to put chief executive Rob Cotton “under heavy scrutiny”, adding”we believe disposals, breakup of the group or indeed a full sale may come under consideration”.
Analysts at Shore Capital, N+1 Singer and Canaccord Genuity all downgraded their recommendations on the company.