Blancco Technology Share Discussion Threads

[pj 1] 03/5/2017 21:13

lol. id suspect they dare not mention the dividend for some time!!

[strange1] 03/5/2017 21:09

......for some reason i am feeling diluted this evening

[strange1] 03/5/2017 21:07

Hmmm, I'm not so sure either........normally with a book build the follow up announcement to say it has concluded is released shortly after.Perhaps they could use these proceeds to increase the divi!

[pj 1] 03/5/2017 20:33

Hmmm, I'm not so sure. Have they actually been placed yet?

[stevenlondon3] 03/5/2017 19:55

One hopes the plonkers have done their homework:- shares already placed so the price should go up.

[pj 1] 03/5/2017 18:00

BLANCCO TECHNOLOGY GROUP PLC

("Blancco" or the "Company")

Proposed Placing of up to 5,800,000 Ordinary Shares at 169 pence per share to raise up to GBP9.8 million

Blancco Technology Group plc (AIM: BLTG), a leading global provider of mobile device diagnostics and secure data erasure solutions, announces its intention to conduct a placing (the "Placing") of up to 5,800,000 new ordinary shares of GBP0.02 each (the "Placing Shares") to raise gross proceeds of up to GBP9.8 million. It is intended that the price at which the new ordinary shares are to be issued (the "Placing Price") will be 169 pence per Placing Share. The Placing Shares will be issued on a non-pre-emptive basis, within the Company's existing share allotment authorities.

The Placing will be conducted by way of an accelerated bookbuild ("Bookbuild"), which will be launched immediately following this announcement, led by Peel Hunt LLP ("Peel Hunt") and Panmure Gordon (UK) Limited ("Panmure Gordon") acting as joint bookrunners (collectively the "Bookrunners") in relation to the Bookbuild. The number of Placing Shares and the aggregate proceeds to be raised through the Placing will be finally determined following completion of the Bookbuild process. A further announcement in respect of these details will be made following completion of the Bookbuild process. The timing of the closing of the book and allocations are at the discretion of the Bookrunners, after discussion with the Company. Additional information on the Placing is included further below.
================================================================================

£9million. How will the Market react to that (assuming the Placing is filled)?

[chasbas] 28/4/2017 08:53

March 30, 2017
Aucnet, AISIDI and Blancco Technology Group Form Strategic Alliance to Create Efficient and Secure Used Mobile Device Buyback Program in China

hxxps://www.blancco.com/press-releases/aucnet-aisidi-blancco-technology-group-form-strategic-alliance-create-efficient-secure-used-mobile-device-buyback-program-china/

[chasbas] 28/4/2017 08:52

March 28, 2017
Blancco Technology Group Expands Asia Pacific Presence with New Office Opening in Beijing, China

New Office in Major China Technology Hub Will Provide State-of-the-Art Data Erasure and Mobile Diagnostics Technology to Enterprises, Mobile Carriers and Resellers in the Region

hxxps://www.blancco.com/press-releases/blancco-technology-group-expands-asia-pacific-presence-with-new-office-opening-in-beijing-china/

[pj 1] 27/4/2017 09:28

chasbas- 'adjusted' is a bit of a clue and possibly a red flag?! What will the real figures be?

[chasbas] 27/4/2017 09:24

Adjusted EPS
Year end June 2017E 2018E
Panmure Gordon 9.5 13.1
Finncap 7.8 8.5
Edison 8.4 11.1
Equity Dev 8.4 11.3

Anybody know what Peel Hunt's forecasts are? They are NOMAD and Joint Broker.
Panmure Gordon are joint broker and increased their forecasts after interim results on 14th March and do not think they need to amend them post the TU on 25th April.

The Finncap note does not say that Blancco is a basket case but argues that growth prospects are lower than consensus with more risk, free cash flow will be negative 2017 - 2019 and so the valuation is lower at only 100p.

Do we trust Blancco's new management when they say that "The outlook for full year 2017 sales and adjusted operating profit remains in line with market expectations." on 25th April?

[pj 1] 26/4/2017 21:14

There you go, I assume that's Hargreave Hale reducing? No doubt in my mind Fincapp picked something up

[supernumerary] 26/4/2017 20:12

Lucky they didn't have a pension fund to raid ;¬)

[chasbas] 26/4/2017 15:28

For your info:
Auditor: KPMG
Brokers: Peel Hunt, Panmure Gordon
Bankers: HSBC
Financial Advisor: Rothschild

Rob Woodward is non-exec chairman

Blancco's next announcement, which IMHO should be in days, will indicate whether these guys know what they are doing (or not). I would hope for additional bank funding of at least £6m rather than a placing. Surely they have to restore market confidence soon?

[weatherman] 26/4/2017 14:33

This looks like it is being softened up by brokers for a low bid by a larger player.

[pj 1] 26/4/2017 13:03

chasbas. Is he an exec Chairman? Im unsure but if so would he not want to perhaps throw out all the dirty bathwater (assuming there is some off course), but at least this panic funding position is a clear indicator something is very wrong.

[chasbas] 26/4/2017 12:37

Recent Board appointments: Rob Woodwood (chairman) + Philip Rogerson (senior indep director). Plus the new interim CFO (Simon Herrick) is also on the Board.
Until they resign surely they will sort this company out?????????
They just cannot be numpties???????

[strange1] 26/4/2017 12:27

Chasbas - re finnCap - it's almost unheard of with a co of this size to for a broker to initiate with a sell rating, so a bit of a red flag here. I agree, won't be the last tech co to mismanage cash but to announce with only weeks of cash left is disturbing. If they had a supportive investor base they could easily gone and placed 5% without coming to shareholders but I'm guessing nobody is interested given the circumstances.

[pj 1] 26/4/2017 12:09

STRANGE1, Clearly the left hand does not know what the right hand is doing, despite all their blah blah blah and over polished Presentations. The whole previous return of cash to shareholders was a farce, I never benefited? In fact I still don't understand where all that cash went, but I'm only a simple person

[pj 1] 26/4/2017 12:02

I see 2 possibilites

1) Finncap have issued the note in an attempt to reduce the share price so one, or more, of their clients can buy. However, I wouldn't put Fincapp in this category of Broker, but it is a possibility however slight

2) They are perhaps aware of intentions of a large holder(s) to sell or reduce, and are in effect warning their own clients.

All IMO

[strange1] 26/4/2017 11:55

How can a company distribute $50m less than a year ago, declare a dividend a month ago that clearly it can't pay without risking a funding collapse and allow the CEO to exercise and sell an ltip award only 2 months ago. This could literally be a couple of delayed receivable payments away from administration.

[chasbas] 26/4/2017 11:41

Just skimmed Finncap's 26 page very detailed (initiation of coverage: target price 100p) sell note: there are 36 tables! The sector analyst must have been working on it for weeks if not months. Blancco is mainly institutionally owned: Prudential, R&M, Fidelity, Schroder, Hambro,Soros, HH, Investec.

Any theories as to why such a huge effort? Maybe one of the institutions asked for a detailed note. It is unusual for a broker to publish such a long Sell note. There is normally no commercial reason to do so.

As a holder I am not convinced Finncap are right but my confidence is definitely shaken. Q3 group sales +48% in constant currency + reassuring outlook statement is positive, surely. Blancco isn't the first high growth company to mismanage its cash - £4m funding must be fixable fairly quickly. I don't want to be shaken out at 172p.

Good luck all.

[twistednik] 26/4/2017 08:30

Thanks for posting the finncap report Glasshalffull!

It's very damning and my worry is the opaqueness of organic growth. If it really is single digit then the shares are still overvalued and my thesis is incorrect! (doh!).

Negative FCF and a further funding gap is counter to earlier broker notes and means a further funding call which next time is likely to be an equity raise!

May take some profit...

[bones] 26/4/2017 07:14

Closed SB at 175p. Too much uncertainty here. It will do as a trade. I can buy a couple of Starbucks with the profits.