6 Jul 2017 07:00
Blancco Technology Group PLC
("Blancco", or the "Group")
PRE‑CLOSE TRADING UPDATE AND NOTICE OF RESULTS
Blancco, a leading global provider of mobile device diagnostics and secure data erasure solutions, is today issuing a pre-close trading update for the year ended 30 June 2017.
The Board is pleased to report that the positive Revenue momentum reported at the interim results has continued through the second half of the year. For the financial year ending 30 June 2017, revenues increased approximately 40% over the prior year, approximately 30% in constant currency, in line with market expectations.
However, cash flow and net cash are below market expectations due to the non-payment of £3.5m of receivables, the majority undertaken in the prior year.
Taking a prudent approach to these receivables we have decided to provide against them by taking a charge of £2.2m, resulting in Adjusted Operating Profits of not less than £5.5m and Adjusted EBITDA of not less than £7.0m (subject to fully closing the accounts and audit).
This reflects the Group's intention to apply a more prudent approach to revenue and income recognition on this type of contract in the future.
The Group will be announcing its final results on Tuesday, 3 October 2017. An analyst briefing will be held at 09:00 at the offices of Tulchan Communications, 85 Fleet Street, London, EC4Y 1AE.
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 ("MAR").
Enquiries:
Blancco Technology Group Plc Patrick Clawson, Chief Executive Officer Simon Herrick, Interim Chief Financial Officer
| +44 (0) 20 3657 7000 |
Peel Hunt LLP (Nominated Adviser and Broker) Edward Knight Euan Brown
| +44 (0) 20 7418 8900 |
Panmure Gordon (UK) Limited (Joint Broker) Dominic Morley, Corporate Finance Charles Leigh Pemberton, Corporate Broking
| +44 (0) 20 7886 2500 |
Tulchan Communications Tom Murray | +44 (0) 20 7353 4200 |
About Blancco
Blancco Technology Group is a leading global provider of mobile device diagnostics and secure data erasure solutions. For more information, please visit www.blancco.com
Cautionary statement
This announcement contains forward‑looking statements that are based on current expectations or beliefs, as well as assumptions about future events. These forward‑looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward‑looking statements often use words such as anticipate, target, expect, estimate, intend, plan, goal, believe, will, may, should, would, could, is con ident, or other words of similar meaning. Undue reliance should not be placed on any such statements because they speak only as at the date of this document and, by their very nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, and Blancco's plans and objectives, to differ materially from those expressed or implied in the forward looking statements.
There are a number of factors which could cause actual results to differ materially from those expressed or implied in forward‑looking statements. Among the factors that could cause actual results to differ materially from those described in the forward‑looking statements are; increased competition, the loss of or damage to one or more key customer relationships, the outcome of business or industry restructuring, changes in economic conditions, currency fluctuations, changes in laws, regulations or regulatory policies, developments in legal or public policy doctrines, technological developments, the failure to retain key management, or the key timing and success of future acquisition opportunities or major investment projects.
Blancco undertakes no obligation to revise or update any forward‑looking statement contained within this announcement, regardless of whether those statements are affected as a result of new information, future events or otherwise, save as required by law and regulations.