13 Jul 2016 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 2016.
The board is pleased to report that the positive momentum reported at the interim results has continued through the second half of the year. For the financial year ending 30 June 2016, revenues increased approximately 49% over the prior year, of which 34% was organic, and both revenues and operating profits are expected to be in line with market expectations.
Growth was driven by expansion in the new and strategically important Mobile Erasure and Live Environment Erasure products, and geographically by the Americas business.
During the period, the Group continued to consolidate its sales office network through acquiring the remaining share of those offices it did not previously own. At the same time Blancco has expanded geographically with the opening of four new sales offices, covering MENA, Benelux, India and China, all of which have been identified as markets with strong opportunities for the Group's suite of products and which are expected to contribute positively in the next financial year.
The Group's customer base and revenue streams are diversified and global. This, coupled with strong demand for data erasure, gives the Board confidence in the prospects for financial year 2017 and beyond.
The Group will be announcing its final results on Tuesday, 20 September 2016. An analyst briefing will be held at 09.30 at the offices of Tulchan Communications, 85 Fleet Street, London, EC4Y 1AE.
Sector change
Blancco is also pleased to announce that following the successful completion of the disposal of the Repair Services Business in April 2016, the FTSE industry classification of the Group has been reclassified as Software & Computer Services; sub-sector Software. The Group was formerly classified under the Support Services sector.
The Group considers that the classification under Software more accurately reflects the existing and future business activities of Blancco following its refocus as a pure play software business.
The sector change was made effective on the London Stock Exchange on 20 June 2016 following the quarterly ICB classification review.
Patrick Clawson, Chief Executive Officer, commented:
"We're pleased with our performance during this financial year. The strength of our business model, with its high proportion of recurring revenue, provides stability from which we can continue to invest for growth. We are looking forward to further growth in 2016/17 and further extending our global reach. Demand for our products continues to be strong, driven by a growing awareness of the importance of data sanitation and regulation."
Enquiries:
Blancco Technology Group Plc +44 (0) 20 3657 7000
Patrick Clawson, Chief Executive Officer
Jog Dhody, Chief Financial Officer
Peel Hunt LLP (Nominated Adviser and Broker) +44 (0) 20 7418 8900
Richard Kauffer
Euan Brown
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
Tom Murray
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.blanccotechnologygroup.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 confident, 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.