Blancco Technology Group PLC Trading Update and Contract Expansion (6579X)

TIDMBLTG

RNS Number : 6579X

Blancco Technology Group PLC

01 May 2019

1 May 2019

Blancco Technology Group PLC

("Blancco" or the "Group")

Trading Update

Contract Expansion with Fortune 500 Company

Blancco Technology Group (AIM: BLTG), a leading global provider of mobile device diagnostics and secure data erasure solutions, is pleased to provide the following trading update for the year ending 30 June 2019 ("FY2019").

Blancco has continued to develop relationships with Channel partners in order to exploit the high-growth Data Centre and Enterprise market opportunity, renewing and winning multiple contracts with international blue-chip clients across EMEA, APAC and the USA. The Group continues to invest in its mobile offering and is cementing its position as a leader in the diagnostics space. As a result, Blancco expects revenues for FY2019 to be marginally ahead of current market expectations. The cost investment initiatives that Blancco has put in place since September 2018 are ongoing and are yet to be fully costed within the organisation and, accordingly, the Group expects adjusted operating profit for FY2019 to be comfortably ahead of the current market consensus.

Blancco is also pleased to announce that it has successfully renewed and significantly expanded a three-year contract with a US-based, Fortune 500 software company. The contract will see the Group deliver its Drive Erasure solution across data centres around the world, generating revenues of approximately US$1.2 million over the duration of the contract with the potential for this to increase as the customer continues to scale. The majority of revenues generated by this contract will benefit the Group in FY2020 and FY2021.

Matt Jones, Chief Executive Officer of Blancco, commented;

"We are delighted to see Blancco's strong operational progress driving profitable growth for the Group and that our strategy of focusing on the three core markets of Mobile, Data Centre / Enterprise and ITAD is delivering new contracts across the business, providing the Group with enhanced earnings visibility. The impressive performance from our team and our continued expansion of relationships with blue-chip Channel partners continues to support our confidence in the Group's ability to deliver long term sustainable growth. We look forward to hosting our Capital Markets event in London on 3 June."

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 ("MAR"). Upon the publication of this announcement, this inside information is now considered to be in the public domain.

For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is being made on behalf of Blancco by Lorraine Young Company Secretaries Limited, Company Secretary of Blancco.

For further information:

 
 Blancco Technology Group Plc                          via Buchanan 
  Matt Jones, Chief Executive Officer 
  Adam Moloney, Chief Financial Officer 
 Peel Hunt LLP (Nominated Adviser 
  and Broker) 
  Edward Knight 
  Peter Stewart 
  Nick Prowting                                [phone] 
 Panmure Gordon (UK) Limited (Joint 
  Broker) 
  Dominic Morley, Corporate Finance 
  Charles Leigh Pemberton, Corporate 
  Broking                                      [phone] 
 Buchanan                                      [phone] 
  Henry Harrison-Topham                     [e-mail] 
  Chris Lane 
  Stephanie Watson 
  Catriona Flint 
 

About Blancco

Blancco Technology Group plc is a leading global provider of mobile device diagnostics and secure data erasure solutions. For more information, please visit www.blanccotechnologygroup.com.

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 [e-mail] or visit www.rns.com.

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May 01, 2019 02:01 ET (06:01 GMT)