TIDMBLTG
RNS Number : 3479C
Blancco Technology Group PLC
22 February 2022
22 February 2022
Blancco Technology Group plc
Interim results for the six months ended 31 December 2021
Sustainability and Governance tailwinds continue to drive strong
growth
Channel partnerships demonstrate ability to drive meaningful
expansion
Blancco Technology Group plc (AIM: BLTG, "Blancco", the
"Company" or the "Group"), the industry standard in data erasure
and mobile lifecycle solutions, is pleased to announce its
unaudited interim results for the six months ended 31 December 2021
.
FINANCIAL HIGHLIGHTS
GBPm unless otherwise stated H1 FY22 H1 FY21 Change
Revenue 19.7 17.4 13%
-------- -------- -------
Gross Profit 19.1 16.2 18%
-------- -------- -------
Adjusted EBITDA* 6.4 5.3 21%
-------- -------- -------
Adjusted Operating Profit* 4.0 2.9 36%
-------- -------- -------
Operating Profit 1.9 0.7 168%
-------- -------- -------
Profit before taxation 1.8 0.5 249%
-------- -------- -------
Adjusted Operating Cash Flow** 4.7 5.4 (14%)
-------- -------- -------
Cash generated from continuing
operations 4.6 5.0 (8%)
-------- -------- -------
Diluted Earnings per share 1.94p 1.08p 80%
-------- -------- -------
Net Cash 10.2 8.2
-------- -------- -------
-- Strong revenue growth of 20% when adjusted for constant exchange rates ("CER"):
o IT Asset Disposition ("ITAD") revenue increased by 33% (CER
+40%) to GBP6.9 million (H1 FY 2021: GBP5.2 million), driven by
pent-up demand unwinding as businesses returned to offices
o Enterprise revenue increased by 11% (CER +17%) to GBP7.1
million (H1 FY 2021: GBP6.4 million)
o Mobile revenue fell slightly (CER +7%) to GBP5.7 million (H1
FY 2021: GBP5.8 million)
-- Good constant currency growth in each of our three geographies:
o North America revenue increased by 19% (CER +25%) to GBP5.8
million (H1 FY 2021: GBP4.9 million)
o APAC revenue in line with prior period (CER +9%) at GBP6.2
million (H1 FY 2021: GBP6.2 million)
o EMEA revenue increased by 22% (CER +28%) to GBP7.7 million (H1
FY 2021: GBP6.3 million)
-- Net cash balances of GBP10.2 million (31 December 2020:
GBP8.2 million), despite GBP1.5 million outflow relating to shares
purchased for the Employee Benefit Trust
-- Gross margins increased to 97% (H1 FY 2021: 93%) driven by
internal product development and subsequent decrease in the
requirement for a significant number of third-party licences
-- Adjusted operating margin of 20% (H1 FY 2021: 17%), led to an
increase in Adjusted Operating Profit to GBP4.0 million (H1 FY2021:
GBP2.9 million). Operating Profit grew to GBP1.9 million (H1 FY21:
GBP0.7 million)
-- Adjusted EBITDA increased to GBP6.4 million (H1 FY 2021:
GBP5.3 million). EBITDA grew to GBP5.7 million (H1 FY21: GBP4.6
million)
OPERATIONAL HIGHLIGHTS
-- Revenue generated from channel partners continues to grow
strongly with channel revenue growing by 33% to GBP4.0 million (H1
FY 2021: GBP3.0 million) and now representing 57% (H1 FY 2021: 47%)
of Enterprise revenue
-- Sustainability pressures on companies are driving growth in
both Enterprise and ITAD revenues
-- Release of pent-up demand drives exceptional growth in ITAD during the period
-- Temporary slowdown in Mobile caused by widely publicised
supply shortages of new handsets resulting in transitory impact on
second-hand market. Blancco's market share continued to increase
and the long-term growth trends in this market remain strong
CURRENT TRADING AND OUTLOOK
-- Pipeline and early Q3 sales activity provide confidence for continued growth in H2
-- Operating margins anticipated to slightly reduce in the short
term due to wage inflation and a return to more normalised levels
of travel expenditure
-- Recent and upcoming product launches support further growth in each division:
o Enterprise: launch of Sustainability Dashboard to give
customers easy access to sustainability and carbon reduction
metrics
o ITAD: increased addressable market with new capability to
erase Google Chromebook devices
o Mobile: new Xcelerate product to target mid-tier mobile
processors
-- Strong structural tailwinds look set to continue for the
long-term, giving confidence for sustainable growth and progress
towards our ambition of becoming a global software leader in the
data security market
Matt Jones, Chief Executive, said:
"We're delighted to report such a strong set of results. Our
performance is driven by our best in class data erasure and
diagnostics solutions and our alignment with attractive,
structurally growing markets which position us well to keep
delivering value to all of our stakeholders.
"Our end-of-life IT Asset Disposition business ("ITAD") has seen
particularly strong growth in the period owing to pent-up demand
being released as companies returned to their offices. Whilst this
was a one-off factor, we believe that the increasing pressure on
companies to act in an environmentally sustainable way regarding
the recycling of IT hardware will continue to drive growth, both in
our ITAD business and across our data management solutions for
Enterprises.
"Blancco is well placed to benefit from the increased focus on
data security and sustainability. Continued product innovation in
each of our three divisions will further increase our addressable
markets and I am excited by the opportunities ahead of us."
*Adjusted profit measures are stated after excluding expenses
relating to share option schemes, exceptional costs & incomes
and the amortisation of acquired intangible assets
** Adjusted operating cash flow is operating cash flow excluding
taxation, interest payments & receipts and exceptional
payments
Presentation and webcast:
A virtual results briefing for analysts will be held today, 22
February 2022 at 3.00pm GMT, via a live webcast and conference call
facility.
If you would like to join the webcast or conference call, please
contact Buchanan at blancco@buchanan.uk.com .
S
For further information:
Blancco Technology Group plc Via Buchanan
Matt Jones, Chief Executive Officer
Adam Moloney, Chief Financial Officer
Peel Hunt (Nominated Advisor & Joint Broker)
+44 (0) 20 7418
Edward Knight / Paul Gillam / James Smith 8900
+44 (0) 20 7597
Investec Bank plc (Joint Broker) 5970
Patrick Robb / Sara Hale / Nick Prowting
+44 (0) 20 7466
Buchanan Communications Limited 5000
Chris Lane / Stephanie Whitmore / Jack Devoy
blancco@buchanan.uk.com
About Blancco
Blancco Technology Group plc is a leading global provider of
mobile lifecycle solutions and secure data erasure solutions. For
more information, please visit www.blancco.com.
CHIEF EXECUTIVE'S REPORT
Business overview
The first six months of the 2021/22 financial year have seen
ongoing revenue and profit growth alongside good levels of cash
generation. This follows a similarly prosperous trading period for
the prior six months and is a result of the global trends of
sustainability and governance which are driving increased demand
for Blancco's market leading solutions.
It has never been acceptable to dispose of IT equipment which is
storing sensitive data without taking precautions to protect that
data, but the importance of this to businesses has been elevated in
recent years by increasing data protection laws being introduced
globally with the risk of extremely high financial penalties being
imposed on organisations which have not taken appropriate steps to
protect sensitive data. Performing tasks such as formatting a hard
drive, or a factory reset on a device, can make it more difficult
to recover data, but the data almost always still resides on the
device. There are only two secure options available to companies
which are disposing of data bearing equipment:
1) Ensure that the equipment is physically shredded into very
small fragments such that no data is recoverable and then send this
material to landfill. This means that the potentially valuable raw
materials used to manufacture the device are lost and not available
for recycling. It also often means that harmful chemicals contained
in such material are released into the soil.
2) Use a secure data erasure solution to permanently erase all
data stored on the device. The device is then able to be reused or
recycled. This method is usually more cost effective, and more
auditable, than the shredding option. Blancco is currently one of
the few software companies to offer this kind of fully certifiable
data erasure solution to businesses and governments.
Whilst it seems obvious that secure data erasure is the most
preferable choice, the reality is that the vast majority of IT
equipment is still shredded and sent to landfill at the end of its
first life. Companies are however gradually behaving in a more
sustainable and responsible manner and looking at how they can
reduce waste as well as minimise their carbon footprint. This
necessitates diverting more equipment away from landfill and
towards data erasure.
Blancco is the global market leader in data erasure software
solutions. Blancco has an unrivalled patent portfolio supported by
an extensive list of global security accreditations which verify
that Blancco's solutions ensure that all data is permanently
erased.
Enterprise
Blancco's Enterprise solutions ensure that data is permanently
erased from all devices that may store it in large organisations.
These companies have the largest inventory of IT equipment storing
the largest quantity of data. These companies are also subject to
increasing data protection regulations around the world from which
failure to comply could result in huge fines based on their global
turnover.
Large organisations are also under increasing pressure to
operate in a sustainable manner, reducing their waste and carbon
footprint. The use of secure data erasure solutions enables those
companies to meet their data protection requirements whilst
supporting sustainability initiatives.
As a result, Blancco has seen sustained double digit growth in
its Enterprise division and reported full year results in September
2021 showing that growth had been at 18% per annum over the past
three years, despite a challenging macro backdrop. This growth has
continued into the new financial year with reported revenue growing
by 11% to GBP7.1 million compared to the same period last year (H1
FY 2021: GBP6.4 million). A relatively small proportion of
Blancco's revenue is transacted in Sterling, meaning that revenues
are subject to foreign exchange fluctuations and this was seen in
the period with underlying growth in the Enterprise division,
excluding these fluctuations, of 17%.
Access to large Enterprise customers on a global basis is
challenging for a company of Blancco's size which has led to
increasing initiatives to develop relationships with strategic
channel partners that have deeper access to large blue chip
organisations. Revenue from channel partners grew by 33% to GBP4.0
million (H1 FY2021: GBP3.0 million) in the period and now
represents 57% (H1 FY 2021: 47%) of all Enterprise revenue.
The Group recently commenced a new channel partnership with a
global IT consultant. Their clients are challenged by t he
landscape for data and device lifecycle management which underwent
a fundamental change during the pandemic. Those clients have seen
increasing adoption of flexible working models and more individuals
accessing and sharing data via personal and public networks and
devices. The collaboration between this IT consultant and Blancco
offers full global service availability of Blancco's data
sanitisation solutions for their back-to-back service support, and
implementation is already underway with one of their largest global
enterprise clients. The partnership sees the consultant's clients
receive access to the full suite of Blancco's Secure Data Erasure
("BSDE") software.
Access to Blancco's BSDE software will simplify the data
sanitisation process by allowing our clients to perform secure,
enterprise-wide data erasure within their existing IT asset
management services. It will also give customers a centralised view
of all managed assets from which they can trigger processes like
remote erasure. This single-source approach further streamlines and
simplifies IT asset management across the organisation globally,
giving enterprises the ability to remotely, securely and easily
erase devices anytime, anywhere.
To further support the sustainability initiatives of our clients
and channel partners, Blancco is adding increased reporting
capability for its clients that will ultimately enable them to
track the environmental impact of using Blancco's solutions. The
Sustainability dashboard is shortly to be added to the existing
reporting on the Blancco Management Console and will eventually
enable clients to track the numbers of devices that have been
erased and recycled. It will also report on the e-waste saving as
well as the potential carbon saving from recycling the materials
and not incurring the carbon footprint of sending the devices to
landfill. This will become important for the Group's clients as
they seek to improve the sustainability metrics that they
themselves report to their stakeholders.
IT Asset Disposition ("ITAD")
An inability to access customer premises meant there was a
slowdown in erasure licences consumed by ITAD customers in the
first half of the prior financial year when revenues fell by 7%.
However, this was reversed as businesses opened up again during the
early months of 2021 with 19% growth in H2 FY2021. This trend has
accelerated in H1 FY2022 with revenue growing 33% to GBP6.9 million
(H1 FY2021: GBP5.2 million).
Blancco's ITAD customers are reporting a period of increased
activity as companies are adjusting to more flexible working
schedules and reconfiguring office workspaces, resulting in
increased levels of computer equipment being disposed of. However,
the longer-term trend is very similar to Enterprise where companies
of all sizes are motivated to conduct business in a more
sustainable manner, rather than arrange for the physical
destruction of assets. As reported in the Group's Full Year
results, ITAD revenues had been growing at a rate of 10% per annum
over the last three financial years, despite the impact of the
pandemic. There is no reason why ITAD revenues can't continue to
grow at similar, if not greater levels, in the years ahead.
From a product perspective, the Group's biggest innovation in
recent months has been the introduction of the capability to erase
Google Chromebook devices. Traditionally, these devices haven't
been used by businesses, but we have seen growth of Chromebook use
among our corporate customers and have recently introduced this
capability to further enhance our position as the clear data
erasure market leader for ITAD customers.
Mobile
We continue to see some COVID related impact on the Mobile
market with supply shortages slowing the number of new handsets
being sold which in turn has temporarily slowed the second-hand
market as consumers typically trade in handsets when purchasing new
ones. The most recent data published by Gartner showed that global
smartphone sales reduced by 6.8% from 366.3 million handsets in Q3
2020 to 342.3 million handsets in Q3 2021. Our Mobile customers are
reporting similar trends with some of our larger customers
processing 10-20% fewer smartphones than in the comparable period
of last year.
Despite the short-term impact of the supply shortages in the
Mobile market, Blancco continued to gain market share and although
revenue fell slightly to GBP5.7 million (H1 FY2021: GBP5.8 million)
in the period, this nonetheless represented growth of 7% when
adjusted for foreign currency movements.
The latest research published by IDC shows that the refurbished
smartphone market is forecast to grow at a compound annual growth
rate of 11.2% per annum to 2024. Its data shows that 225.5 million
handsets were shipped in 2020 and this is expected to increase to
351.6 million in 2024. As the market matures, we expect that the
proportion of these devices which are securely erased, as opposed
to being encrypted by a factory reset, will increase and therefore
accelerate the growth of the market in which we operate.
The Blancco solution has always been targeted at the largest
mobile processors who process millions of phones per annum. The
large processors are primarily concerned with ensuring the most
secure erasure takes place and that the handset is processed in the
shortest possible time. Blancco's solution uses patented technology
which allows us to communicate directly with the firmware of the
device and enables handsets to be processed up to 50% quicker than
any of our competitors while also processing up to 60 devices
simultaneously. Coupled with our experience of operating in the
software erasure market and security accreditations, Blancco has a
market leading proposition for the large mobile processors.
Mid-tier mobile processors who process fewer handsets, in
perhaps the tens or hundreds of thousands of devices, have
different priorities and will often look for a cheaper solution
where processing time is less of a concern. Blancco has recently
launched Blancco Xcelerate which is targeted to compete in this
market segment. Blancco Xcelerate is a small piece of hardware
which can enable 20 devices to be processed simultaneously but will
be priced on a subscription basis which will give certainty to
customers on the monthly outflow relating to Blancco licences. This
solution competes directly with the major players in this market
and will bring Blancco's accredited erasure solution to potential
customers who had previously considered it too expensive.
Summary and Outlook
We are delighted with the growth of the business through the
2021 calendar year despite a challenging macro backdrop, with
currency adjusted revenue growth of 25% in H2 FY2021 being followed
by currency adjusted revenue growth of 20% in this most recent
six-month period. This revenue growth has also demonstrated the
operational gearing in the business with these results showing
gross margins of 97% and adjusted operating margin growing to 20%.
Whilst cash grew from GBP10.1 million at 30 June 2021 to GBP10.2
million at 31 December 2021, this was depressed by the GBP1.5
million outflow relating to the purchase of shares into the
Employee Benefit Trust to satisfy future vesting of awards under
the Company's long term incentive plan.
The Enterprise business has consistently grown at almost 20% per
annum and the governance and sustainability growth drivers detailed
above should ensure that growth rates of approximately this level
will be maintained. The ITAD market has seen a period of very high
growth as demonstrated by the currency adjusted growth of 40% that
we have seen in this reporting period. Whilst we anticipate this
growth to slow when the release of post pandemic pent-up demand is
satisfied, similar growth drivers to those for our Enterprise
business give us confidence that the growth rate of circa 10% seen
in the three previous financial years can be at least maintained if
not modestly improved. In Mobile we have continued to gain market
share, but supply chain issues have indirectly impacted the growth
of our mobile business. Long-term market data suggests a resold
handset market that is growing at 11% per annum. The new Blancco
Xcelerate product is intended to gain market share in Mobile and we
anticipate growth rates to increase from those reported in these
results.
We do anticipate an increased cost base as we fill staff
vacancies through the second half of the year, with the impact of
pay increases and a return to more normal travel patterns also
impacting operating margins in the short term. However, with a full
sales pipeline of opportunities as we enter the second half of the
financial year, we look forward with confidence to another period
of growth.
Matt Jones
Chief Executive Officer
CHIEF FINANCIAL OFFICER'S REPORT
Revenue
Revenue growth in H1 FY22 was 20% excluding the impact of
foreign exchange movements which follows on from 25% currency
adjusted revenue growth experienced in the second half of the prior
financial year. Whilst 2020 was a challenging period due to the
pressures of the pandemic, 2021 has seen businesses adjust to
managing their remote workforces on a sustainable basis which has
led to increased demand for Blancco's data erasure solutions.
Growth CER Growth
Six months ended rate Year ended
31 December 31 December 30 June
2021 2020 2021
========================
Revenue (GBP millions) 19.7 17.4 +13% +20% 36.5
======================== ============ ============ ======= =========== ===========
Revenue by Geography
======================== ============ ============ ======= =========== ===========
North America 5.8 4.9 +19% +25% 11.2
Europe 7.7 6.3 +22% +28% 13.4
Asia and ROW 6.2 6.2 - +9% 11.9
======================== ============ ============ ======= =========== ===========
Revenue by Market
type
======================== ============ ============ ======= =========== ===========
Enterprise 7.1 6.4 +11% +17% 14.1
ITAD 6.9 5.2 +33% +40% 11.5
Mobile 5.7 5.8 -2% +7% 10.9
======================== ============ ============ ======= =========== ===========
Particularly strong growth has continued in North America where
revenue grew by 19% (25% when adjusted for currency movements),
following on from the second half of the prior financial year when
growth was 49%. The move towards sustainable activity is being led
by the largest companies in the world of which many are based in
the US.
Europe was the strongest growth region with revenue growing by
22% to GBP7.7 million (CER growth 28%). This reflects the reopening
of businesses following the pandemic with Europe experiencing the
most severe and lengthy lockdowns. Conversely, Asia only saw
constant currency growth of 9% in the period with the region having
not been as severely impacted by the pandemic in the comparative
period. Asia is particularly affected by Mobile activity where
supply shortages of new handsets led to reduced used handset
availability.
Profitability Measures
The Company saw increased profit margins during the period due
to several major factors:
-- During the period, the Company launched a solution which
reduced the requirement to purchase third party licences when
processing mobile handsets. This was previously a large proportion
of cost of goods sold and this elimination resulted in overall
gross margins increasing from 93% to 97% in the period
-- Whilst Travel & Entertainment returned to a certain
extent, particularly in North America, it remains comfortably below
pre-pandemic levels. We do anticipate Travel & Entertainment
continuing to increase as restrictions are eased but the increasing
use of technology will mean that it will not return to pre-pandemic
levels
-- As is being reported by businesses globally across all
sectors, it is challenging to recruit and retain the best employees
which has meant that it is taking longer to fill vacancies than we
would normally expect and this does result in cost savings. We
anticipate in the second half of the year we will be able to fill
many of those roles and will also see the impact of wage inflation
come through in operating margins
Adjusted Operating Profit for the period increased by 36% to
GBP4.0 million (H1 FY2021: GBP2.9 million). Operating profit for
the period was GBP1.9 million (H1 FY2021: GBP0.7 million). Adjusted
operating margins in the first six months of the year grew from 17%
in the prior year to 20% in first half of FY2022 as a result of the
factors listed above. We do anticipate some operating margin
reduction in the second half of the year as we continue to look to
fill vacancies in headcount and the full six-month impact of pay
increases and vacancies filled in the first half come through. We
also anticipate Travel & Entertainment returning more
significantly in the period from now until 30 June 2022.
6 months ended 6 months ended 31
31 December December
2021 2020
(unaudited) (unaudited)
GBP'000 GBP'000
===================================== ==== ==== ================ ===================
Operating profit 1,916 716
------------------------------------------------- ---------------- -------------------
Exceptional income - (41)
Amortisation of acquired intangible
assets 1,337 1,460
Share-based payments charge 699 767
------------------------------------------------- ---------------- -------------------
Adjusted operating profit 3,952 2,902
------------------------------------------------- ---------------- -------------------
Adjusted EBITDA for the period grew by 21% to GBP6.4 million (H1
FY 2021: GBP5.3 million), giving an adjusted EBITDA margin of 33%
(H1 FY 2021: 30%).
Balance Sheet
Whilst cash grew to GBP10.2 million (31 December 2020: GBP8.2m),
this was suppressed by a cash outflow of GBP1.5 million to purchase
Blancco shares for the Employee Benefit Trust. The Group
experienced a very strong sales period in the second quarter which
led to an increased Debtor balance of GBP7.8 million (30 June 2021:
GBP6.2 million) and will result in further positive cash generation
in the second half of the year.
Adam Moloney
Chief Financial Officer
Consolidated Statement of Comprehensive Income
for the six months ended 31 December 2021
6 months 6 months Year ended
ended ended
30 June
2021
31 December 31 December (audited)
2021 2020
(unaudited) (unaudited)
Note GBP'000 GBP'000 GBP'000
===================================== === ====== ============== ============== ===========
Revenue 19,676 17,417 36,506
Cost of sales (588) (1,262) (2,807)
================================================== ============== ============== ===========
Gross profit 19,088 16,155 33,699
Administrative expenses and
depreciation (17,172) (15,439) (31,925)
================================================== ============== ============== ===========
Operating profit 1,916 716 1,774
-------------------------------------------------- -------------- -------------- -----------
Acquisition costs - - -
Exceptional income - (41) (837)
Amortisation of acquired intangible
assets 1,337 1,460 2,859
Share-based payments charge 699 767 1,490
-------------------------------------------------- -------------- -------------- -----------
Adjusted administrative expenses (15,136) (13,253) (28,413)
-------------------------------------------------- -------------- -------------- -----------
Adjusted operating profit 3,952 2,902 5,286
-------------------------------------------------- -------------- -------------- -----------
Finance income 1 51 121
Finance costs (85) (242) (420)
================================================== ============== ============== ===========
Profit before tax 1,832 525 1,475
Taxation (302) 191 (95)
Profit for the period 1,530 716 1,380
================================================== ============== ============== ===========
Discontinued operations
Post tax results from discontinued
operations - 114 331
================================================== ============== ============== ===========
Profit for the period 1,530 830 1,711
================================================== ============== ============== ===========
Attributable to:
Equity holders of the company 1,505 822 1,697
Non-controlling interests 25 8 14
================================================== ============== ============== ===========
Profit for the period 1,530 830 1,711
================================================== ============== ============== ===========
Consolidated Statement of Comprehensive
Income
for the six months ended 31 December
2021
6 months 6 months Year ended
ended ended
30 June
31 December 31 December
2021 2020 2021
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
=========================================== ==== ============= ============= ===========
Profit for the period 1,530 830 1,711
Other comprehensive loss - amounts
that may be reclassified to profit
or loss in the future:
Exchange differences arising
on translation of foreign entities (995) (2,718) (5,862)
================================================= ============= ============= ===========
Total comprehensive income/(loss)
for the period 535 (1,888) (4,151)
================================================= ============= ============= ===========
Attributable to:
Equity holders of the Company 523 (1,856) (4,049)
Non-controlling interests 12 (32) (102)
================================================= ============= ============= ===========
Total comprehensive income/(loss)
for the period 535 (1,888) (4,151)
================================================= ============= ============= ===========
Earnings per share
Continuing Operations:
Basic 2 2.01 p 0.96 p 1.84 p
Diluted 2 1.94 p 0.93 p 1.78 p
Discontinued Operations:
Basic 2 - 0.15 p 0.45 p
Diluted 2 - 0.15 p 0.43 p
Total Group:
Basic 2 2.01 p 1.11 p 2.29 p
Diluted 2 1.94 p 1.08 p 2.21 p
Condensed Consolidated Balance
Sheet
as at 31 December 2021
31 December 31 December 30 June
2021 2020 2021
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
================================== ==== ============= ============= ===========
Assets
Non-current assets
Goodwill 47,555 50,101 48,199
Other intangible assets 17,928 21,423 19,369
Property, plant and equipment 2,449 2,366 2,249
Deferred tax assets 99 1,008 119
68,031 74,898 69,936
======================================= ============= ============= ===========
Current assets
Inventory 166 73 110
Trade and other receivables 7,820 6,251 6,204
Current tax asset 579 439 469
Cash 10,205 8,241 10,071
18,770 15,004 16,854
======================================= ============= ============= ===========
Total assets 86,801 89,902 86,790
======================================== ============= ============= ===========
Current liabilities
Trade and other payables (7,867) (7,868) (7,767)
Contingent consideration - (319) -
Current tax liability (380) (288) (336)
Provisions - (166) -
(8,247) (8,641) (8,103)
Non-current liabilities
Other payables (1,268) (1,258) (1,131)
Deferred tax (2,766) (3,572) (2,655)
Provisions - (52) -
================================== ==== ============= ============= ===========
(4,034) (4,882) (3,786)
======================================= ============= ============= ===========
Total liabilities (12,281) (13,523) (11,889)
======================================== ============= ============= ===========
Net assets 74,520 76,379 74,901
======================================== ============= ============= ===========
Equity
Called up share capital 1,513 1,512 1,512
Share premium account 21,103 21,103 21,103
Merger reserve 5,861 5,861 5,861
Capital redemption reserve 417 417 417
Translation reserve (792) 3,258 190
Retained earnings 45,843 43,595 45,255
=================================== ======= ======= =======
Total equity attributable to
equity holders of the Company 73,945 75,746 74,338
Non-Controlling interest reserve 575 633 563
=================================== ======= ======= =======
Total equity 74,520 76,379 74,901
=================================== ======= ======= =======
Condensed Consolidated Statement
of Changes in Equity
for the six months ended 31
December 2021
6 months 6 months Year
ended ended ended
31 December 31 December 30 June
2021 2020 2021
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
====================================== === ============= ============= ===========
Balance at the start of the
period 74,901 77,350 77,350
Total comprehensive income/(loss)
for the period 535 (1,888) (4,151)
Purchase of Company's own shares (1,546) - -
Issue of shares 1 - -
Share based payment charge inclusive
of deferred tax 629 917 1,702
=========================================== ============= ============= ===========
Balance at the end of the period 74,520 76,379 74,901
=========================================== ============= ============= ===========
Consolidated Cash Flow Statement
for the six months ended 31 December
2021
6 months 6 months Year
ended ended ended
31 December 31 December 30 June
2021 2020 2021
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
=========================================== ============ ============ ============
Profit for the period 1,530 830 1,711
============================================ ============ ============ ============
Adjustments for:
Results of discontinued operations - (114) (331)
Net finance charges 84 191 299
Tax expense/(income) 302 (191) 95
Loss on disposal of intangible assets - - 66
Loss/(profit) on disposal of property,
plant and equipment 1 (5) (6)
Depreciation on property, plant
and equipment 554 577 1,129
Amortisation of intangible assets 1,912 1,829 3,753
Amortisation of acquired intangible
assets 1,337 1,460 2,859
Share-based payments expense 699 767 1,490
============================================ ============ ============ ============
Operating cash flow before movement
in working capital 6,419 5,344 11,065
-------------------------------------------- ------------ ------------ ------------
Exceptional income - (41) (837)
-------------------------------------------- ------------ ------------ ------------
Adjusted EBITDA 6,419 5,303 10,228
-------------------------------------------- ------------ ------------ ------------
(Increase)/decrease in inventories (54) 21 (19)
(Increase)/decrease in receivables (1,715) 642 588
Decrease in payables and accruals (37) (1,011) (1,249)
Cash generated from continuing operations 4,613 4,996 10,385
Acquisition costs payments - 252 252
Share-based payments 42 155 155
Adjusted operating cash flow 4,655 5,403 10,792
------------ ------------
Interest received 67 51 54
Interest paid (80) (80) (113)
Other finance costs paid - - (242)
Tax (paid)/received (187) 250 228
============================================ ============ ============ ============
Net cash generated from operating
activities - continuing operations 4,413 5,217 10,312
Net cash generated from operating
activities - continuing and discontinued
operations 4,413 5,217 10,312
============================================ ============ ============ ============
Cash flows from investing activities
Purchase of property, plant and
equipment (62) (126) (235)
Purchase and development of intangible
assets (2,189) (2,600) (4,876)
Acquisition of subsidiaries, net
of cash acquired - - (319)
Net cash used in investing activities
- continuing operations (2,251) (2,726) (5,430)
Net cash used in investing activities
- continuing and discontinued operations (2,251) (2,726) (5,430)
============================================ ============ ============ ============
Cash flows from financing activities
Payment of the principal portion
of lease liabilities (373) (554) (927)
Purchase of Company's own shares (1,546) - -
Issue of shares 1 - -
Net cash used in financing activities (1,918) (554) (927)
Net cash used in financing activities
- continuing and discontinued operations (1,918) (554) (927)
Net increase in cash and cash equivalents 244 1,937 3,955
Other non-cash movements - exchange
rate changes (110) (415) (603)
Cash and cash equivalents at the
beginning of period 10,071 6,719 6,719
============================================ ============ ============ ============
Cash and cash equivalents at end
of period 10,205 8,241 10,071
Net cash 10,205 8,241 10,071
============================================ ============ ============ ============
Notes to the Half Year Report
For the six months ended 31 December 2021
1. Basis of Preparation
These half yearly results have been prepared on the basis of the
accounting policies to be adopted for the year ended 30 June 2022.
These are in accordance with the Group's accounting policies as set
out in the latest audited annual financial statements for the year
ended 30 June 2021.
All UK adopted International Accounting Standards and
interpretations currently endorsed by the UK Endorsement Board, in
conformity with the requirements of the Companies Act 2006 and as
required to be adopted by AIM listed companies, have been applied.
AIM listed companies are not required to comply with IAS 34
'Interim Financial Reporting' and accordingly the Company has taken
advantage of this exemption.
The financial information in these half yearly results does not
constitute statutory accounts for the six months ended 31 December
2021 and should be read in conjunction with the Group's annual
financial statements for the year ended 30 June 2021.
The condensed consolidated half yearly financial statements for
the six months to 31 December 2021 have not been audited or
reviewed by auditors pursuant to the Auditing Practices Board
guidance on Review of Half yearly Financial Information.
These unaudited half yearly results were approved by the Board
of Directors on 21 February 2022.
2. Earnings per share (EPS)
6 months 6 months
ended ended Year ended
31 December 31 December 30 June
2021 2020 2021
(unaudited) (unaudited) (audited)
Pence Pence Pence
========================================= ============ ============ ===========
Continuing operations
Basic earnings per share 2.01 p 0.96 p 1.84 p
Diluted earnings per share 1.94 p 0.93 p 1.78 p
Adjusted earnings per share 4.23 p 3.44 p 5.77 p
Diluted adjusted earnings per
share 4.08 p 3.34 p 5.58 p
========================================= ============ ============ ===========
Discontinued operations
Basic earnings per share - 0.15 p 0.45 p
Diluted earnings per share - 0.15 p 0.43 p
Adjusted earnings per share - 0.15 p 0.45 p
Diluted adjusted earnings per
share - 0.15 p 0.43 p
========================================= ============ ============ ===========
Total Group
Basic earnings per share 2.01 p 1.11 p 2.29 p
Diluted earnings per share 1.94 p 1.08 p 2.21 p
Adjusted earnings per share 4.23 p 3.59 p 6.22 p
Diluted adjusted earnings per
share 4.08 p 3.49 p 6.01 p
========================================= ============ ============ ===========
6 months 6 months
ended ended Year ended
31 December 31 December 30 June
2021 2020 2021
(unaudited) (unaudited) (audited)
Continuing operations GBP'000 GBP'000 GBP'000
========================================= ============ ============ ===========
Profit for the period 1,530 716 1,380
Profit attributable to non-controlling
interests (25) (8) (14)
========================================= ============ ============ ===========
Profit attributable to equity
holders of the Company 1,505 708 1,366
========================================= ============ ============ ===========
Reconciliation to adjusted profit:
Amortisation of intangible assets 1,337 1,460 2,859
Exceptional income - (41) (837)
Revaluation of contingent consideration - 62 62
Amortisation of bank fees 4 - 3
Share based payments 699 767 1,490
Tax impact of above adjustments (387) (415) (667)
========================================= ============ ============ ===========
Adjusted profit for the period 3,158 2,541 4,276
========================================= ============ ============ ===========
Number of shares '000s '000s '000s
Weighted average number of
shares 74,691 73,767 74,104
Impact of dilutive share options 2,646 2,381 2,573
Diluted 77,337 76,148 76,677
=================================== ======= ======= =======
The dilutive share options are in respect of the shares awarded
under the Blancco Performance Share Plan and Sharesave Plan.
3. Profit for the period
Profit for the period for the Group has been arrived at after
charging/(crediting):
6 months 6 months
ended 31 ended 31 Year ended
December December 30 June
2021 2020 2021
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
======================================== ============ ============ ===========
Depreciation of property, plant and
equipment - owned 127 128 247
Depreciation of property, plant and
equipment - right-of-use asset 427 449 882
Loss on disposal of intangible assets - - 66
Loss/(profit) on disposal of property,
plant and equipment 1 (5) (6)
Amortisation of intangible assets 3,249 3,289 6,612
Expenses related to leases of
low-value assets 11 12 25
Cost of inventories recognised
as an expense 145 129 377
Research & Development expense 509 458 1,131
Staff costs 9,572 8,260 17,507
Net foreign exchange gain (52) (127) (316)
========================================== ============ ============ ===========
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR DGGDDGBDDGDB
(END) Dow Jones Newswires
February 22, 2022 02:00 ET (07:00 GMT)
Blancco Technology (LSE:BLTG)
Historical Stock Chart
From Apr 2024 to May 2024
Blancco Technology (LSE:BLTG)
Historical Stock Chart
From May 2023 to May 2024