Blancco Technology Share Discussion Threads

[cerrito] 14/9/2023 20:18

I have heard nothing which is not surprising as I have my shares
with Barclays and indeed after my selling have few left.
Interested to see the RNS today with GAMCO, whoever they are,increasing
and I do wonder if the bidders do not get the 50pc if the bidders will walk.
What do I know, but do not see them as increasing their bid much above 235
and of course we have not had a counter bid.

[galois2] 11/9/2023 17:13

I received a letter from CMi2i acting on behalf of the bidders encouraging me to accept the bid. To me, the timing looks opportunistic and the premium low. Perhaps why the acceptance level is so low. They are obviously trying to bounce the private investor. I'll sit tight and hopefully the directors will push for a raised offer.

[cerrito] 06/9/2023 07:51

Acceptances stuck at 47.5pc and that includes Canacord no binding agreement for 11.72pc of the shares.

[cerrito] 31/8/2023 08:14

I see this morning's share price increase and acceptances not yet over the 50 pc mark and wonder if we will get an increased price from our bidder.

[cerrito] 02/8/2023 07:02

I see that Soros has backed it and no doubt this was the outcome that they and other II's(not to mention myself) were after.
One would have hoped for a higher price but the reality is that this reflects the current circumstances.
I do not see a counter offer but cannot be ruled out.

[tole] 02/8/2023 06:09

Cash offer at 233p (vs closing price of 179p), a 24.6% premium.

[tole] 02/4/2023 18:45

https://www.telegraph.co.uk/investing/shares/recent-share-price-falls-potential-small-cap-stocks/Update: BlanccoBlancco, another IHT portfolio holding, has also fallen heavily over recent months as investor sentiment towards smaller companies has weakened. The software deletion specialist's shares are down 15pc over the past year but the company nevertheless released positive half-year results last month that indicate a recovery is ahead.Revenue increased by 16pc year on year, with all of its main geographical regions growing at a double-digit rate despite ongoing economic uncertainty. Its adjusted operating profit margin increased slightly to 21pc from 20pc in the comparable period despite high inflation prompting cost rises.Its balance sheet remains sound, with net finance costs covered 45 times by adjusted operating profit during the first half of the year. This suggests it has the capacity to make further acquisitions following last year's purchase and successful integration of US-based erasure specialist WipeDrive.Blancco's organic growth prospects remain bright, with environmental concerns likely to prompt a growing proportion of companies to use data erasure services, as opposed to landfill, for redundant equipment. And with regulatory changes such as the EU's GDPR legislation imposing large penalties on businesses that fail to protect personal data, demand for the company's services is likely to rise.Trading on a forward price-to-earnings ratio of around 23, the company's shares are by no means cheap despite their recent fall. Furthermore, they have posted an 8pc decline since being added to our IHT portfolio in December 2020.However, with encouraging half-year results and clear long-term growth catalysts, the company offers attractive capital growth potential over the coming years. Hold.Questor says: holdTicker: BLTGShare price at close: 187p

[cerrito] 31/3/2023 10:12

Given what NCC said, this fall today not surprising.

[wjccghcc] 28/2/2023 21:33

I think you're using statutory EPS. Adjusted EPS forecast on stockopedia was tweaked up to 8.2p (I think Stifel is up to 8.9p) so a PE of 20-21.

They made 3.5p EPS in H2 last year, so earnings would have to be flat or lower after H1 of 5.5p to make the forecast. While H2 growth won't be as stellar as H1, it's unlikely earnings will be flat yoy so probably a marginal beat IMHO.

[cerrito] 28/2/2023 20:45

A good presentation today on IMC and I would pay thm the ultimate complement by saying they have made BLTG boring which was hardly the case a few years back.
They were right to point out that in the short term both their ITAD and mobile divisions face headwinds, albeit temporary.
The issue is if this business, well managed as it is and in very attractive market, warrants in the current financial/market situation a pe of 30x.
I will go back to sleep on this with one eye open.

[cerrito] 21/2/2023 07:22

At first read a good set of results and indeed I asked myself when they will start to pay dividends. Liked the cash flow generation pre working capital and noted no comments on working capital movements. Also liked the fact that last year's acquisition has been so successful that they will be paying the full earn out.
The issue is that even after the eps improvement at 2.96p for the half year it is fully valued.
I am very comfortable with my holding here and also with management.

[cerrito] 20/10/2022 14:30

Running behind schedule so have yet to organize myself to do my observations on the IMC call.
In the meantime the FT had a long article a couple of weeks back on companies getting rid of corporate data and for those who can access it an interesting read for BLTG followers.

It refers to the problems that Morgan Stanley faced with inappropriate data disposal
see
hxxps://www.infosecurity-magazine.com/news/morgan-stanley-fined-60m-over-data/

[cerrito] 04/10/2022 22:21

For me a clear presentation by the CFO - the CEO has covid-and the business has a good head of steam and looks set for consistent growth.
I will write something up when I have collected my thoughts and seen the recording.

[cerrito] 24/9/2022 22:05

Interesting to see that Forager who went in big 3/4 years ago when the shares were about 60p have increased their holding.
For sterling investors like me this company is worth more now than when the Chancellor
stood up yesterday morning

[garth] 22/9/2022 07:19

Thanks for sharing your thoughts Cerrito.

Best wishes,

G.

[cerrito] 21/9/2022 16:27

I note that they are releasing their prelims on the 28th.
My rule of thumb is that if you are an AIM company or even a small LSE main board one with a financial year end June 30 and have bad/not so good results, you want to release your year end results before September 30 as they will be submerged by all the interim results coming out from companies with a December year end. Conversely if you have good results you announce them in the first week of October when there are very few results statements. My bones tell me that while the prelims will not blow the lights out, neither will they be disappointing.
Anyway I have rather gone to sleep here over the last 9 months. I have fewer shares than before and the company is moving slowly along. I see that over the last year there has been a pretty static share register and indeed the last change of holdings RNS was in September last year.
LSE trading volumes do not seem to have been big and the greatest movement has been the stately and continuous decline in the share price.
I reminded myself that Soros is the major shareholder. His name has of course come up in the last week with the 30th anniversary of Black Wednesday and I have gone on the basis that his Fund Management Company keeps Boards on their toes and as such good to have as a
major shareholder but truth to tell I have no idea if that is true.
Will be interesting to see how the acquisition of Wipedrive is going. I am going on the basis that given the cash used in that acquisition any dividend will be the most nominal. I do note their comment in the interims that they then expected strong cash generation in H2 FY 20/21.I do not have a strong view of a resumption of a dividend as no doubt there are other good bolt on acquisitions they can make once and only once they have digested wipedrive.
The question I have is do I replace the shares I sold in the upper 200's or see how far the general market malaise drags the shares down. We need to remember that eps in H1 was 2p so even after the decline they are still trading at a demanding PE. I do not see myself doing anything before the prelims come out.

[kalai1] 20/1/2022 14:42

Blancco Technology Group plc posted a year-end trading update yesterday. The Group achieved strong growth in revenue in H1 FY22, above the board's expectations and has converted a number of new business opportunities during H1 FY22. Blancco continues to benefit from a strong pipeline, which has further strengthened during the period. The operational gearing inherent in the business have resulted in anticipated operating margins for H1 FY22 increasing significantly. As a result, adjusted operating profit, adjusted EBITDA and cash are all expected to be comfortably above the board's expectations. The balance sheet is healthy. Valuation looks a little rich with forward PE ratio at around 34, but this is actually mid-range for the Software & IT Services market. However, share price lacks momentum over the past year so there is no rush to buy here. But certainly an interesting share worth monitoring for now

....from WealthOracleAM

hxxps://wealthoracle.co.uk/detailed-result-full/BLTG/318

[cerrito] 18/1/2022 08:53

Good stuff but reality is that nothing less than what Mr Market is looking for even at the reduced share price.

[cerrito] 06/11/2021 20:18

Was featured in yesterday Friday Telegraph Questor column with a hold.
To me with the return on capital of 6.7pc and a pe of 47.quite alot of good news is in the price.
It is in the Telegraph IHT portfolio

I do not see myself as buying or selling in the foreseeable future at current prices.

[cerrito] 16/10/2021 16:32

Just got round to listening to the IMC presentation of the other week.
No surprise that it was very clear and questions well answered and well worth 40 minutes of one’s time. Dividends not on the immediate horizon as they have M&A ambitions especially in enterprise. Fair enough as they have the strength in both management and balance sheet.
I have no holdings in business travel shares and no immediate plans to have any and noted that they expected they anticipate that their international travel expenditure will go back to 60/70% of pre Covid expenditure.
I have no plans to buy or sell in the immediate future. I see the price has weakened on minimal volume in the last three days. In the last six months we have had just 2 change of holding RNS’s both with Canaccord modestly increasing their holding.

[cerrito] 28/9/2021 07:11

A very pleasing set of results especially bearing in mind the strengthening of sterling with 30 pc of sales in North America and another 30 pc in Asia /ROW.
If they continue at this rate we can talk about dividends.
That said even with the eps increase from 1.6p to 2.9p the pe ratio is such that Mr Market has high demands for eps growth.
Incidentally I think they would have done better to do the announcement next month ie after Friday. We still have the interims of all those companies with December year end coming out. Next week there will be a dearth of news.
.

[davr0s] 21/6/2021 21:06

No it's a retrace in an uptrend on any meaningful timeframe. Primary trend still very much up.... unless you are trying to day trade this

[charlie9038] 21/6/2021 19:43

down trend again, need news

[cerrito] 09/6/2021 07:41

Good that they reminded us they will be hit by a stronger pound.
Good that better than management expectations - problem is that that is rather a meaningless phrase. Much more useful to compare to market expectations and then define their understanding of market expectations.
If they can do so well with reduced travel costs, I would have cut my holdings in hotel and airline shares if I had any.

[charlie9038] 09/6/2021 07:08

Good RNS should start to move now :))