Blancco Technology (BLTG) appears to be back on its feet following a change in management. During the year to June, the data erasure group’s data centre and enterprise business saw sales climb by a fifth to £10.3m, buoyed by a 48 per cent increase in channel-partner sales to £5.3m. This improvement has been fuelled, in part, by intensifying regulation – including Europe’s new data privacy rules: ‘GDPR’. Blancco notes that similar data privacy laws are emerging in other parts of the world – for example, the California Consumer Privacy Act.
Elsewhere, Blancco’s ‘ITAD’ business (IT asset disposition) saw sales rise 18 per cent to £10.2m – ahead of overall market rates. But the group concedes that the backdrop here is mature – guiding towards “more modest” growth this year. Blancco says that its mobile business operates in a more competitive market. This division has, thus, seen ongoing investment in research and development, and acquisitions. Revenues here edged up by just 4 per cent to £10m, although management anticipates stronger growth in the future.
Broker Panmure Gordon expects adjusted EPS of 4.2p for the year to June 2020, up from 3.5p in FY019.
| BLANCCO TECHNOLOGY (BLTG) | ||||
| ORD PRICE: | 128p | MARKET VALUE: | £95m | |
| TOUCH: | 125-130p | 12-MONTH HIGH: | 154p | LOW: 86p |
| DIVIDEND YIELD: | na | PE RATIO: | na | |
| NET ASSET VALUE: | 82p* | NET CASH: | £0.1m | |
| Year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2015 | 15.0 | -2.4 | -3.8 | 5.0 |
| 2016 | 21.2 | -2.8 | -5.2 | 2.0 |
| 2017 | 26.9 | -1.9 | -5.3 | nil |
| 2018 | 26.9 | -0.6 | -1.1 | nil |
| 2019 | 30.5 | -0.3 | -1.0 | nil |
| % change | +13 | - | - | - |
| Ex-div: | na | |||
| Payment: | na | |||
| *Includes intangible assets of £68.9m, or 93p a share | ||||
