NCC Group PLC (LSE:NCC), a cybersecurity firm, lost 47% of its share price value on Friday after a profit warning.
Full-year underlying profits are expected to reach between £28mln and £32mln, against £47mln originally forecast, a trading update revealed.
The Manchester-based firm claimed that strong headwinds mainly from the US and partially from the UK were the cause of the downgrade.
Layoffs across the tech sector causing buying decision delays and cancellations, further uncertainty from the banking sector following recent collapses and interest rate hikes were all cited.
The cybersecurity arm of the business now expects low single-digit growth instead of high single-digit increases.
“Macro-economic headwinds, market volatility and uncertainty are undermining business confidence, and as a result, we are seeing demand fall,” said Mike Maddison, chief executive.
A new strategy is expected to be implemented soon, as the financial issues may persist into next year.
The company plans to develop an offshore delivery and operations centre and invest in a new model and brand.
“The group's strategy will deliver a more resilient business that is positioned to fully capitalise on opportunities to meet changing client needs in a dynamic cyber market,” added Maddison.
However, investors appear unconvinced.
Prior to the profit warning on Friday, NCC had lost more than 25% of its value in the year to date – with today's drop meaning 60% of the share price has been wiped since 2023 began.
Shares began trading at 84p on Friday having closed at 153p on Thursday.