Blancco Technology Share Discussion Threads

[cerrito] 16/7/2019 14:37

At one level the week £ is no doubt supporting the price but good that even with Forrager taking some good profits and in some ways in the short term more ominously M&G reducing that the price is holding up.
I will feel more comfortable when M&G who have abstained in the voting at the last 2 AGMs have a smaller stake.

[cerrito] 11/7/2019 21:43

The 2% increase in the share price today a bit mean considering the profit performance of the year ending June;that they have given themselves a good financial structure by the equity raise at decent price and the acquisition.
Of course we do not know what the market consensus that they refer to is and if it is the same as ruling on May 1 when we were told that adjusted operating profit would be comfortably ahead of then current market expectations.
I continue to feel comfortable here

[edmonda] 11/7/2019 07:35

Agreed , excellent news on profits / cash conversion / debt elimination and the accretive deals fill out the mobile product suite nicely.

Updated research and numbers just out from Equity Development : FY20 sales & adjusted EBIT (pre SBPs) increased, taking fair value up from 160p to 174p/share.

Free access to full note here:

[nw99] 11/7/2019 07:29

Great news

[zipstuck] 11/7/2019 07:17

I really like this acquisition.

With the fortune 500 client it has it can hopefully make some hay this year.

Its beginning to build credibility in the new management focusing on margins not revenue.

Hopefully will re-rate.

[tallprawn] 11/7/2019 07:14

Nice profit upgrade this morning and a good couple of acquisitions on a quick bit of research. Blancco are definitely in the right space at the minute with most companies looking to mitigate their exposure to the fines issued out to BA and Marriott this week.This should now confirm an upward trend in the share price and allow for a retest of recent highs over the next few trading sessions.

[weatherman] 11/7/2019 06:28

Good news this morning with profit upgrade and acquisition.

[edmonda] 08/7/2019 06:48

Also massive £183.4m fine for British Airways this morning from the UK's Info Commisioner's Office. Underlines the importance of Data Protection and GDPR. Could also have a positive impact for data erasure specialists like Blancco, given this issue is now likely to rocket towards the top of corporate board agendas

[nw99] 08/7/2019 06:31

Looks a nice entry level on the charts

[cerrito] 15/6/2019 18:59

I have just got round to listening to the webcast of the Capital Markets Event on June 3.
There were four speakers from BLTG- the CEO Matt Jones, the CFO, The Head of Products and Technology Russ Ernst , who I understand is a recent recruit, and Head of Global Sales Alan Bentley, who had been around for some time.
The last two did most of the presentation going through the product lines from a technical and market perspective.
They came across well prepared; the whole thing was if anything rather low profile..compared to all the bravado of the last such webcast I saw under the old regime.In that spirit the CEO did comment that unlike in times past they were not taking on business they could not handle.
Some of it was rather heavy going and I have to confess I did find it hard to stay awake at times.
The room was pretty full; a reasonable amount of questions but as people did not say who they were representing not possible to know who was in the audience.
Too bad no one asked the question I would have asked about recruitment and managing a new and geographically disperse team. It was to me good that the Head of HR was there but she did not speak.
I note the share price has been drifting down c since then but truth to tell there was no real new news to get the share price motoring.
Alot of their competitors in the mobile space are small companies and there were a few comments on consolidation. At the AGM it will be interesting to see if they feel they are ready to do acquisitions. My feeling is that they are getting there in terms of having the management infrastructure but wonder if they have the financial resources yet- especially as they pointed out in the presentation do need to invest money in R&D-albeit a comfortable amount-£358k in H1 FY18/19 and £658k in FY17/18.
The big picture is that even with no hard financial information I came away more comfortable with management.
PS
The website has the good presentation slides

[ilovefrogs] 01/5/2019 09:18

Agreed - I've let some go at 145p this morning. If it keeps going, then fine, I still have some, but if it sees some profit taking beck to 120, I'll buy them back.

[garth] 01/5/2019 08:58

Trading at around 35x 2020 eps estimates now?

Attractive growth story, but isn't the valuation already tight?

G.

[edmonda] 01/5/2019 07:35

Positive update that trading was ahead of expectations plus it had won a $1.2m contract extension from a Fortune 500 client.

New Equity Development research note and increased fair value published, free access here:

[weatherman] 01/5/2019 07:03

Looking good this morning following trading positive statement.

[mfhmfh] 05/4/2019 09:33

Rob Woodward purchase

[sefton1] 14/3/2019 20:36

Going nowhere.

[edmonda] 11/3/2019 11:57

You can see the CFO of Blancco being interviewed in full(23 mins) after the recent interim results here:

[garth] 04/3/2019 07:41

Thank you Cerrito for taking the time to post that. I too was cheered by the results - it is good have the detail with the additional questions raised.

G.

[cerrito] 02/3/2019 20:09

A rather delayed commentary on the HI results.
I need to say that when the results came out, I thought they read well and I was surprised that the share price did not go up more .
I have just had a more detailed look ; the figures while in no way bad on close inspection do not read as well.
They correctly comment on the increase in sales compared to last year's H1. However if you go to the KPI section and see the figures adjusted for IFRS15 and 9, you will see that revenue was flat at £14.6m between this last half and the previous one of Jan/June 2018.
Sales in Asia/ROW fell from £4.2m to £3.7m and of data centre/erasure from £5 m to £4.7m.
Profitability was also weaker with last year's H2 operating profit pre adjustments falling from £0.7m to £0.6m in the half year just finished.
I appreciate that the profitability had been impacted by the 11pc increase in employees since June last year-including some senior hires.
We are told that the cost base will increase in this current half.
They comment on the reduction in debt at balance sheet date and indeed to reduce net debt from £3.4m to £2.3m in calendar 2018 is good; that said this reduction is not reflected in finance costs which at £364k in this last half were essentially the same as they had been on the previous two Half's.

There is good news: yes we have an exceptional once again but at least it is a credit from a release of a provision; they come on strong about the future and,as anticipated, they saved cash by settling the Tabernus contingent consideration in shares but it would have been good if they had specified what market expectations are. Digital Look has £30m for this FY-the same forecast as it has been for the last 6 months and for £34 next year. They have this FY’s eps as 2,77p-in the last six months it has oscillated between 2.74 to 3.36p and next year at 4.13p
I have also been through the Equity Development report.
I see that they have a revenue target of £30m and adjusted EBITDA of £2.7m. This gives an H2 revenue of £15.4m and an adjusted EBITDA loss of £0.3 m given that they give the H1 ebitda profit of £3m. They ED do not specify why there will be this loss in H2.
They argue that that it is undervalued compared to cyber security peers; I do not place all that much importance in that comparison as all these companies are so different.
They discuss consolidation in the industry; always possible that a bid would come in but would not put any weight on it.I was somewhat surprised that there was no bid when the shares were half their current value.
PS
I see that yesterday Friday and Wednesday were busy trading days by BLTG standards with 1% of shares traded.
PPS
Alternative views welcome

[edmonda] 19/2/2019 08:18

strong H1 results: revs +19%, adj EBITDA +71% and EBITDA margins jumped to 11.3%. Board is 'confident in the long-term opportunity.'

Updated Equity Development research note now out with fair value raised and well above current levels, freely accessible here:

[weatherman] 19/2/2019 07:44

Good report this morning.

[sharesoc] 02/1/2019 16:35

There is a detailed report on Blancco Technology's recent AGM which can be found in our members area here:

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