NCC looks like a stock to buy on a pull back. Chart looks in the mood.

TA.



FUNDIES.

NCC Group PLC

FORECASTS 2011 2012
Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Peel Hunt
03-03-11 BUY 17.09 34.72 10.46 19.27 39.15 14.03
Investec Securities
02-03-11 HOLD 17.21 35.53 11.00 18.47 38.13 12.00
Brewin Dolphin [R]
01-03-11 HOLD 17.00 35.10 11.00
Altium Securities
18-02-11 BUY 17.10 36.00 12.20 19.60 41.90 14.10
Milkstone Ltd
14-02-11 BUY 17.40 37.50 12.00 20.00 42.50 14.10
Charles Stanley Securities
23-04-10 BUY

2011 2012
Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Consensus 17.20 35.95 11.43 19.38 40.52 13.63
1 Month Change -0.00 -0.02 -0.01 -0.02 -0.05 -0.03
3 Month Change -0.12 -0.90 -0.24 -0.28 -0.83 -0.07


GROWTH
2010 (A) 2011 (E) 2012 (E)

Norm. EPS 25.04% 30.12% 12.71%
DPS 25.81% 17.21% 19.30%

INVESTMENT RATIOS
2010 (A) 2011 (E) 2012 (E)

EBITDA 16.48m 19.79m 22.10m
EBIT 13.74m m m
Dividend Yield 1.70% 2.00% 2.38%
Dividend Cover 2.83x 3.15x 2.97x
PER 20.72x 15.92x 14.13x
PEG 0.83f 0.53f 1.11f
Net Asset Value PS -74.13p p p

OUTLOOK STATEMENT. 6 months to 30/Nov/2010

Current trading & outlook



The Group's approach remains to grow by the acquisition of earnings enhancing, high quality businesses, combined with strong organic growth. The Board sees no change to that strategy, whilst the Group's focus away from areas of discretionary expenditure will ensure that the business continues to grow strongly.



The considerable investment in time and resources, both financial and managerial, to build the range of capabilities in the Assurance Division is starting to pay dividends. As one of the international market leaders, the Group is very well placed to benefit from the increase in awareness about cyber-crime and cyber-terrorism. The objective remains to develop further the Group's knowledge, experience, international reach and capability to ensure that NCC Group is an international organisation of choice in the information security space.



The Escrow businesses expect annual renewals to be 15.2m (14.4m in November 2009) in this financial year, based on termination rates at 12%. Escrow Verification Testing worldwide has a forward order book of 2.4m (2.3m in November 2009).



The Assurance Division's testing order books have increased and now stand at 18.8m (10.5m in November 2009). The renewal rate for Site Confidence web performance testing increased to 90% (82% at November 2009), giving renewal revenue of 4.6m (3.7m in November 2009) for this financial year.



In total the Group has orders and renewals up 33% totalling 41.0m (30.9m in November 2009) for the current financial year.



The Group's revenue has always been biased towards the second half of the financial year and this is expected to continue this year. The Board remains confident of a good second half to the financial year in line with current market expectations.

DYOR.

From Invesstech the TA Pros

Volatility risk: Medium Liquidity risk: Medium Risk explanation

Positive Candidate -Medium term, Mar 7, 2011 Analysis Explanation

NCC GROUP is within a rising trend and continued advance within the current trend is indicated. On reactions back, there is support against the floor of the trend channel. The stock has support at pence 470 and resistance at pence 655. Positive volume balance, i.e. high volume in days of rising prices and low volume in days of falling prices, strengthens the stock in the short term. The stock is overall assessed as technically positive for the medium long term.