NCC

NCC is the clear UK and European market leader in software escrow and also has an exciting and rapidly growing IT security business. The company was admitted to AIM in 2007 by a tier one investment bank with an associated placing of £50m of old shares. However, the placing was not a complete success as insufficient demand was generated to enable a complete exit by the venture capital backer and a significant amount of stock remained in its ownership and presented a significant potential obstacle to share price growth.

NCC is the leading provider of independent IT assurance, security and consultancy services. As a trusted advisor, NCC helps over 15,000 public, private and not for profit sector organisations, including the majority of the FTSE100, to make the most efficient use of information and technology and to manage the associated risks. The business is based in Manchester, with offices in the UK, Germany, Holland and USA. The business operates through 3 divisions: Escrow solutions, assurance testing, and consultancy.

Soon after flotation Brewin Dolphin’s technology analysts identified NCC as a highly attractive proposition given its combination of high earnings visibility, sector leading margins and strong long term growth prospects from a unique product offering. Following a full evaluation of the investment case an in-depth research note was published and NCC was initiated as the conviction buy in the sector. Brewin Dolphin was the first independent broker to take up coverage of NCC and the research helped to clarify the investment case.

Brewin Dolphin successfully placed all of the £12m stock that had remained with the venture capitalists amongst a range of existing and new investing institutions. The process involved detailed discussions with the venture capitalists and a short book building process. The placing enabled investors to take meaningful investment positions in NCC.