Surging data volumes, growing smartphone usage and mounting pressure on corporations to safeguard digital information fuelled demand for data erasure and mobile diagnostics from Blancco Technology (BLTG) in the first half of 2016. Organic sales leapt 35 per cent at the company - which changed its name from Regenersis after selling its repair services business in April - propelling constant currency adjusted operating profits up 37 per cent to £7.4m. Acquisition costs kept statutory profits in the red.
Organisations use Blancco's patented, government-certified technology to securely expunge information on smartphones, flash drives and other hardware. Sales of the group's 'live environment' erasure tools - designed for in-use rather than decommissioned devices - nearly tripled to £2.3m, fuelling a 17 per cent rise in average revenue per client to £51,600. Management also agreed 32 sales worth more than £100,000 apiece, up from 21 in the previous financial year.
Blancco acquired rival Tabernus, making it the market leader in the crucial US market. It also took full control of mobile diagnostics outfit Xcaliber, which broke even on an adjusted basis after inking a contract with AT&T to roll out service kiosks across more than 5,500 US stores.
Broker Peel Hunt expects adjusted pre-tax profits of £6.4m this financial year, giving EPS of 8.8p (up from £4.7m and 5.6p in FY2016).
| BLANCCO TECHNOLOGY (BLTG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 232p | MARKET VALUE: | £135m | |
| TOUCH: | 228-235p | 12-MONTH HIGH: | 244p | LOW: 140p |
| DIVIDEND YIELD: | 0.9% | PE RATIO: | na | |
| NET ASSET VALUE: | 83p* | NET CASH: | £1m | |
| Year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015 (restated)† | 15.0 | -2.4 | -3.8 | 5.0 |
| 2016 | 22.4 | -1.3 | -3.7 | 2.0 |
| % change | +49 | - | - | -60 |
Ex-div: 3 Nov Payment: 7 Dec *Includes intangible assets of £66.9m, or 115p a share †Restated to reflect disposal of repair services business in Apr 2016 | ||||
