For Blancco Technology’s (BLTG) chairman, Rob Woodward, “2017 has been a year of substantial challenges for the group”. In March, Blancco reported higher pre-tax losses for the first half. Come September, management announced the reversal of £2.9m in revenues booked through to June, reducing performance expectations for the full year. The then chief executive Pat Clawson duly fell on his sword and the group’s shares plummeted.
However, the market reacted positively to the data erasure specialist's preliminary figures, which detailed a strengthening top line, albeit against restated comparatives in the prior year, including a £1.2m revenue reduction, again linked to contract issues.
Some encouragement is provided through a 19 per cent organic growth rate, with a pleasing increase in erasure revenue, coupled with new diagnostics contracts. Reported losses narrowed considerably, thanks to higher finance income stemming from the revaluation of deferred consideration for two previous acquisitions – currency movements reduced the value of these liabilities significantly.
Analysts at Peel Hunt forecast adjusted EPS of 3.1p for the year to June 2018, up from 3p in 2017.
| BLANCCO TECHNOLOGY (BLTG) | ||||
| ORD PRICE: | 73.5p | MARKET VALUE: | £47m | |
| TOUCH: | 73-74p | 12-MONTH HIGH: | 308p | LOW: 47.5p |
| DIVIDEND YIELD: | na | PE RATIO: | na | |
| NET ASSET VALUE: | 79p* | NET CASH: | £1.7m | |
| Year to | Turnover | Pre-tax | Earnings per | Dividend |
| 30 Jun | (£m) | profit (£m) | share (p) | per share (p) |
| 2015 | 15.0 | -2.4 | -3.8 | 5.0 |
| 2016 (restated) | 21.2 | -2.8 | -5.2 | 2.0 |
| 2017 | 27.7 | -1.7 | -5.2 | nil |
| % change | +31 | - | - | - |
| Ex-div: | na | |||
| Payment: | na |
