Shares in Blancco Technology (BLTG) have been hammered over the past year on profit warnings and the departure of its former chief executive – more than halving the data erasure group’s market cap. Thus, a 3 per cent dip on the latest half-year numbers seemed relatively undramatic. Trading was reasonable; indeed, Peel Hunt said this was the first time since last May that it hasn’t cut its outlook. Bosses have “delivered on the promise to stabilise the ship”.
Revenue was down slightly against restated 2016 figures, but mobile erasure sales growth was particularly strong at 41 per cent in constant currencies. Blancco sold its Mexico business during the period, agreeing a distribution model for the region that management anticipates will “generate value” in the medium term. That said, the adjusted operating margin that shrank from 25.8 per cent to 13.9 per cent – weighed on by a substantial rise in the cost base from the prior year.
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: | 63p | MARKET VALUE: | £40m | |
TOUCH: | 62-63p | 12-MONTH HIGH: | 250p | LOW: 48p |
DIVIDEND YIELD: | nil | PE RATIO: | na | |
NET ASSET VALUE: | 75p* | NET DEBT: | 7% |
Half-year to 31 Dec | Turnover (£m) | Pre-tax loss (£m) | Loss per share (p) | Dividend per share (p) |
2016 | 12.8 | -2.2 | -4.77 | 0.7 |
2017 | 12.6 | -1.1 | -1.76 | nil |
% change | -1 | - | - | nil |
Ex-div: | na | |||
Payment: | na | |||
*Includes intangible assets of £65.2m, or 102p a share |