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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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NCC - H1 earnings rise 44%

March 2008

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • NCC
  • Price:
  • 376p
Shares in escrow solutions provider NCC are holding up well after itreported a good set of interims and a significant acquisition. For thesix months ended 30 November, group revenue rose 42% to £16.4m whilepretax profit increased 41% to £4.6m. Excluding the effect ofacquisitions the growth rate for revenue and profit was 15% and 21%respectively. Diluted eps rose 44% to 9.8p. The core escrow solutions division, which holds critical softwarecode for a client which it releases if the software developer goesbust, saw sales grow 15% to £8.4m and operating profit by 26% to £4.6m.Price increases of 6% have been introduced while the annual growth ratein beneficiaries was 13% and there are now 15,262 customers compared to14,432 six mon ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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