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RNS Number : 2178D

Blancco Technology Group PLC

25 April 2017

25 April 2017

BLANCCO TECHNOLOGY GROUP PLC

("Blancco" or "the Company")

Q3 Trading Update, Cash Flow Review and Funding

Blancco Technology Group plc today provides an update on its Q3 2017 trading performance, the outcome of its recent cash flow review and funding requirements.

Trading performance

Blancco announces that trading for the third quarter to 31 March 2017 ("Q3 2017") has been strong. Group sales in the period were up 48% year-on-year on a constant currency basis, comprising 36% growth in erasure and 189% pro forma growth in diagnostics. In the first nine months of the year, Group sales increased 34% year-on-year in constant currencies, with erasure growth now at 26% and pro forma diagnostics growth at 137%. The outlook for full year 2017 sales and adjusted operating profit remains in line with market expectations.

Cash flow review

Since the interim results on 14 March 2017, the Company has undertaken a review of its cash flow forecasts. The Company has identified that costs associated with past acquisition activity, including earn-outs and advisors' fees, the later arrival of a large government contract and the slipping of larger contract deals to later in this current quarter will all build pressure on the forecasted cash available to the Company during Q4.

Further funding

The Company has revised its projection for group net debt to around GBP5.5m at June year end and requires additional funding of a minimum of GBP4m over the coming weeks to address the working capital position and increase the Company's headroom.

The Board is exploring a range of possible sources for this additional funding and is initiating discussions with its bankers and shareholders concerning the most appropriate way to fill the funding shortfall. The Company is confident of a satisfactory outcome and will update the market further when appropriate.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.

For further information, please contact:

 
 Blancco Technology Group 
  Plc 
  Patrick Clawson, Chief 
  Executive Officer 
  Simon Herrick, Interim 
  CFO                           +44 (0) 20 3657 7000 
 
 Peel Hunt LLP (Nominated 
  Adviser and Broker) 
  Edward Knight 
  Euan Brown                    +44 (0) 20 7418 8900 
 
 Panmure Gordon (UK) Limited 
  (Joint Broker) 
  Dominic Morley, Corporate 
  Finance 
  Charles Leigh Pemberton, 
  Corporate Broking             +44 (0) 20 7886 2500 
 
 Tulchan Communications 
  Tom Murray                    +44 (0) 20 7353 4200 
 

About Blancco

Blancco Technology Group plc is a leading data erasure software business, serving enterprises and governments around the world.

www.blancco.com

This information is provided by RNS

The company news service from the London Stock Exchange

END

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(END) Dow Jones Newswires

April 25, 2017 02:01 ET (06:01 GMT)