The Times Tip2 Jan 2017 23:21
NCC
Data thieves are growing in number and sophistication, which is why I’m picking NCC, one of Britain’s biggest cyber-security consultancies.
Under chief executive Rob Cotton, the Manchester firm has grown rapidly via acquisitions. It helps blue-chip companies keep hackers at arm’s length, and should be well placed to advise clients on forthcoming changes to European data protection rules, which will impose hefty fines on corporations judged to have been cavalier with customer information.
In the current financial year (ending in May) NCC is expected to deliver pre-tax profits of about £36m on revenue of £256m, according to joint house broker Jefferies. Its shares (which closed at 180.75p on Friday) are trading on a ratio of about 17 times projected earnings, relatively cheap for the tech industry. So what’s the catch? NCC’s market value plummeted by a third in October when three contracts were cancelled and another delayed. After a trading update last month, Cotton and NCC’s chairman snapped up more than £300,000 of stock. A very public vote of confidence.