Blancco Technology Group PLC Q3 Trading Update, Cash Flow Review and Funding (2178D)
April 25 2017 - 2:01AM
UK Regulatory
TIDMBLTG
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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