Part of a global cyber security group has been valued at around £240m as a sell-off is tipped as "the most likely result" of its strategic review.
Manchester-headquartered NCC Group is undergoing a review into its operations after recently revealing plans to cut jobs.
The listed group said it has "experienced a lengthening of the sales cycle, which is leading to delays in buying decisions, work commencement and therefore revenue recognition, particularly in North America and the UK".
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Analysts at Panmure Gordon have now said the review should lead to the disposal of the software resilience business to allow the group's focus to switch fully to the cyber security services arm, Assurance.
Panmure Gordon Harvey Robinson said: "The new CEO, Mike Madison, has clearly identified that there are no synergies between the two and a strategic review has begun.
"Our view is that the accelerated investment in the high growth cyber security services business makes sense, with a disposal of Resilience the most likely result of the review.
"We update our forecasts for the recent adjusted guidance, which reflect some macro headwinds and accelerated investment in Assurance.
"Given its high margins, a sensible price for software resilience in our view would be c.£240m, which is c.4x sales."
At the start of February, NCC Group confirmed that its revenue rose from £150.1m to £176.6m while its pre-tax profits increased from £8.4m to £10.3m in the six months to November 30, 2022.
In the wake of the announcement, shares in the group fell by 17% before recovering.
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