11 Jul 2018 07:00
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 £3.5m at the half year to £2.8m 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.