Blancco Technology Group PLC Trading Update and Notice of Results (2345U)
July 11 2018 - 1:00AM
UK Regulatory
TIDMBLTG
RNS Number : 2345U
Blancco Technology Group PLC
11 July 2018
Wednesday 11 July 2018
BLANCCO TECHNOLOGY GROUP PLC
("Blancco" or the "Company")
TRADING UPDATE AND NOTICE OF RESULTS
Blancco Technology Group PLC (AIM: BLTG), a leading global
provider of mobile device diagnostics and secure data erasure
solutions, today issues this trading update for the twelve months
to 30 June 2018, in advance of its full year results which will be
announced on 25 September 2018.
During the twelve months to the end of June 2018 significant
management time and effort was focused on addressing a number of
legacy issues. Good progress has been made to this end. The
operational teams have been reorganised and refocused and the
Company has been strengthened by the appointment of Matt Jones as
CEO. The Board is also pleased to announce that Adam Moloney will
be joining the Company as Chief Financial Officer with effect from
23 July 2018 and a separate announcement has been released today
detailing his appointment.
Results for the year to 30 June 2017 included a number of
non-repeating volume sales deals, where revenue was recognised up
front on the sale of software covering multiple future years.
Several of these sales replaced deals previously contracted and
recognised over time on a monthly basis. These were not due for
renewal during the twelve months to 30 June 2018, impacting
Blancco's comparative year on year revenue and the contract renewal
rate during 2018.
Revenue for the financial year was modestly ahead of the same
period last year, albeit not as positive as anticipated and was
impacted by the strengthening of Sterling. New client contracts won
during the second half more than fully mitigated the impact of the
prior year's non-repeating deals producing 7% second half revenue
growth in constant currency.
Adjusted Operating Profit (AOP) and AOP margin percentage were
higher than full year expectations at c11% AOP margin, following
the September 2017 reorganisation and closer cost management in the
balance of year.
Second half sales and AOP growth were accompanied by a positive
second half cashflow, reducing net debt from GBP3.5m at the half
year to GBP2.8m at the year end, an improvement on previous
guidance following improved second half EBITDA and customer cash
collection.
Matt Jones, Chief Executive of Blancco, commented:
"I have been really encouraged by what I have found across the
business since I joined in March 2018 and have been impressed by
the people and organisation that is in place. The team have
achieved an enormous amount in addressing the legacy business
issues and stabilising the Company. Blancco has close relationships
with its customers across its target verticals, and supporting
these customers going forward will be key to our success. I am
making good progress with my strategic review and look forward to
executing a plan to fully exploit the market opportunities ahead of
Blancco."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014 ("MAR"). Upon the
publication of this announcement, this inside information is now
considered to be in the public domain.
For the purposes of MAR and Article 2 of Commission Implementing
Regulation (EU) 2016/1055, this announcement is being made on
behalf of Blancco by Lorraine Young Company Secretaries Limited,
Company Secretary of Blancco.
Enquiries:
Blancco Technology Group Plc +44 (0) 20 3657 7000
Rob Woodward, Chairman
Matt Jones, Chief Executive Officer
Simon Herrick, Interim Chief Financial Officer
Peel Hunt LLP (Nominated Adviser and Broker) +44 (0) 20 7418
8900
Edward Knight
Nick Prowting
Panmure Gordon (UK) Limited (Joint Broker) +44 (0) 20 7886
2500
Dominic Morley, Corporate Finance
Charles Leigh Pemberton, Corporate Broking
Tulchan Communications +44 (0) 20 7353 4200
James Macey White
Tom Murray
Matt Low
About Blancco
Blancco Technology Group plc is a leading global provider of
mobile device diagnostics and secure data erasure solutions. For
more information, please visit www.blanccotechnologygroup.com.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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