Shares in Blancco Technology Group (BLTG) took a tumble after management announced it would need to raise a minimum of £4m in coming weeks, to shore up its working capital and increase headroom. The share price fell by more than a quarter in early trading.
IC TIP:
Hold
at
178.5p
The software services group undertook a cash flow review during the weeks following the release of its half-year results in mid-March. Management concluded costs from previous acquisitions and a large government contract delay during the current quarter of trading would place its cash postion under pressure later this year. It is in discussions with its bankers and shareholders over the best way to fulfil the shortfall.
