Blancco Technology Group (BLTG)

Sector:

IT Services

Index:

FTSE AIM All-Share

 129.00p
   
  • Change Today:
      0.000p
  • 52 Week High: 153.50
  • 52 Week Low: 87.50
  • Currency: UK Pounds
  • Shares Issued: 65.20m
  • Volume: 7,500
  • Market Cap: £84.10m

Blancco board positive as it continues hunt for new CEO

By Josh White

Date: Friday 19 Jan 2018

LONDON (ShareCast) - (ShareCast News) - Mobile device diagnostics and secure data erasure solutions provider Blancco Technology Group issued a trading update for the six months to 31 December on Friday, in advance of its half yearly results which would be announced on 20 March.
The AIM-traded company said that, during the six months to the end of December, "significant" management time and effort was focused on the immediate priorities required to place Blancco on the "best operational and financial "footing following the resignation of the CEO and the review of the accounting for contracts and financial controls.

It said revenue in the first half of the current financial year was "marginally behind" that of the same period last year, but the board expected trading to grow during the second half leading to positive full year revenue growth.

The impact of currency had been slightly adverse following the strengthening of sterling, the board added

"Results for the six months to 31 December 2016 included a number of non-repeating volume sales deals, where revenue was recognised up front on the sale of software covering multiple future years," the Blancco directors explained in their statement.

"Several of these replaced deals previously contracted and recognised over time on a monthly basis.

"These were not due for renewal during December 2017 impacting Blancco's comparative year on year revenue and the contract renewal rate."

They said new client contracts won during the current period did not fully mitigate the impact of last year's non-repeating deals.

Overall, the group's erasure division saw a decline in year-on-year sales due to the non-renewal of multiyear end-of-life erasure contracts.

Mobile erasure saw a substantial growth rate, however, as the company secured numerous new clients.

The group's mobile diagnostics division remained flat, in line with management's expectations for the first half.

"As we expected, adjusted operating profit was lower than in the prior year, due to the lower revenue and the significant selling, general and administrative costs taken on during the second and third quarters of the prior year flowing through the first half the current year," the board added.

"Adjusted operating profit margin percentage was lower than full year guidance, but was better than our first half expectations, following the reorganisation and cost savings made between September and December 2017."

The board said it now expected full-year revenues to be towards the lower end of its guidance range, while adjusted operating profit and cash flow remained in line.

"During the period we also negotiated the sale of our Mexican legal entity, which will become a distributor of Blancco products in the Latin America region, consequently we have reclassified the results of the Mexican business as discontinued and treated them appropriately in the current and prior financial periods," the board added.

"We believe that this structure will benefit both parties to the transaction and promote the growth of Blancco services in the region."

Payments related to the restructuring of the management team and a legacy payment relating to prior year mergers and acquisitions had reduced cash balances since the financial year end, however, the group's operating cash flow before interest and tax remained "positive".

The board said the CEO recruitment process was progressing "well", adding that it would update the market at the appropriate time.

"The board is confident that we have considerably improved the functioning of the business, which stands Blancco in much better stead for the new CEO to execute a sustainable growth strategy, allowing the group to leverage its market leading position and take advantage of growing demand."

Email this article to a friend

or share it with one of these popular networks:


Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

BLTG Market Data

Currency UK Pounds
Share Price 129.00p
Change Today 0.000p
% Change 0.00 %
52 Week High 153.50
52 Week Low 87.50
Volume 7,500
Shares Issued 65.20m
Market Cap £84.10m

BLTG Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
31.65% below the market average31.65% below the market average31.65% below the market average31.65% below the market average31.65% below the market average
26.53% above the sector average26.53% above the sector average26.53% above the sector average26.53% above the sector average26.53% above the sector average
Price Trend
47.35% above the market average47.35% above the market average47.35% above the market average47.35% above the market average47.35% above the market average
47.17% above the sector average47.17% above the sector average47.17% above the sector average47.17% above the sector average47.17% above the sector average
Income Not Available
Growth
13.24% below the market average13.24% below the market average13.24% below the market average13.24% below the market average13.24% below the market average
36.63% below the sector average36.63% below the sector average36.63% below the sector average36.63% below the sector average36.63% below the sector average

What The Brokers Say

Strong Buy 2
Buy 0
Neutral 0
Sell 0
Strong Sell 0
Total 2
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

BLTG Dividends

  Latest Previous
  Interim Final
Ex-Div 11-May-17 03-Nov-16
Paid 16-Jun-17 07-Dec-16
Amount 0.70p 1.34p

Trades for 21-Nov-2019

Time Volume / Share Price
16:17 2,500 @ 129.00p
15:46 5,000 @ 129.16p

BLTG Key Personnel

CEO Matt Jones
CFO Adam Moloney

Top of Page