TIDMBLTG
RNS Number : 4963Q
Blancco Technology Group PLC
21 February 2023
21 February 2023
Blancco Technology Group plc
Interim results for the six months ended 31 December 2022
Increasing Sustainability and Governance tailwinds accelerate
double-digit growth
Blancco Technology Group plc (AIM: BLTG, "Blancco", the
"Company" or the "Group"), the industry standard in data erasure
and mobile lifecycle solutions, is pleased to announce its interim
results for the six months ended 31 December 2022 (the "Period")
.
FINANCIAL HIGHLIGHTS
GBPm unless otherwise stated H1 FY23 H1 FY22 Change
Revenue 24.0 19.7 +22%
--------- -------- -------
Gross profit 23.5 19.1 +23%
--------- -------- -------
Adjusted EBITDA* 8.0 6.4 +24%
--------- -------- -------
Adjusted operating profit* 5.1 4.0 +30%
--------- -------- -------
Operating profit 2.7 1.9 +42%
--------- -------- -------
Profit before tax 2.6 1.8 +42%
--------- -------- -------
Adjusted operating cash flow** 5.3 4.7 +15%
--------- -------- -------
Cash generated from continuing
operations 5.3 4.6 +14%
--------- -------- -------
Diluted earnings per share 2.91p 1.94p +50%
--------- -------- -------
Net funds 7.9 10.2 -22%
--------- -------- -------
-- Strong revenue growth of 22%, 16% when adjusted for constant exchange rates ("CER"):
-- Enterprise revenue increased by 33% (CER +24%) to GBP9.4
million (H1 FY 2022: GBP7.1 million)
-- IT Asset Disposition ("ITAD") revenue increased by 30% (CER
+25%) to GBP9.0 million (H1 FY 2022: GBP6.9 million)
-- Mobile revenue fell slightly by 1% (CER -3%) to GBP5.6
million (H1 FY 2022: GBP5.7 million) as sales of new smartphones
slowed, impacting the trade of used handsets in the period
-- Double digit constant currency growth in each of our three geographies:
-- North America revenue increased by 39% (CER +22%) to GBP8.0
million (H1 FY 2022: GBP5.8 million)
-- EMEA revenue increased by 12% (CER +10%) to GBP8.7 million (H1 FY 2022: GBP7.7 million)
-- APAC revenue increased by 19% (CER +19%) to GBP7.3 million (H1 FY 2022: GBP6.2 million)
-- Net funds increased to GBP7.9 million from GBP6.2 million on 30 June 2022
-- Gross margins remain strong, edging higher to 98% (H1 FY 2022: 97%)
-- Adjusted operating margin of 21% (H1 FY 2022: 20%), despite
pressures from wage inflation and US dollar strength. Adjusted
Operating Profit* increased to GBP5.1 million (H1 FY 2022: GBP4.0
million). Operating Profit grew to GBP 2.7 million (H1 FY 2022:
GBP1.9 million )
-- Adjusted EBITDA* increased to GBP8.0 million (H1 FY 2022:
GBP6.4 million). EBITDA grew to GBP7.2 million (H1 FY 2022: GBP5.7
million)
OPERATIONAL HIGHLIGHTS
-- Accretive acquisition of US-based erasure specialist
WipeDrive, which completed in June 2022, is now fully integrated
and contributed revenue of GBP0.9 million in the Period
-- Continued focus on developing channel partners to sell our
solutions to Enterprise customers saw revenue from channel partners
grow by 30% in the period to GBP5.2 million (H1 FY 2022: GBP4.0
million)
-- Sustainability credentials further strengthened by achieving an MSCI AA rating
-- Partnership with Ebay agreed to introduce condition grading
on computer equipment and mobile handsets enabling ITAD and mobile
customers to sell equipment on the Ebay platform
-- Won new SaaS contract worth US$0.5 million per annum with one
of the largest software companies in the world following our
introduction of a Microsoft Windows interface to the Blancco
Erasure solution
-- New partnership signed with Tata Consultancy Services to
provide Erasure as a Service ("EaaS") to their largest
customers
CURRENT TRADING AND OUTLOOK
-- The appointment of a new President of Global Sales and a Vice
President of Americas Sales in 2022 have driven incremental revenue
growth and strengthened the opportunity pipeline
-- WipeDrive team fully integrated with a single product across
the Group now rolled out to customers
-- Enterprise remains the fastest growing market and will
continue to represent an increasingly large portion of group
revenue
-- The Company continues to trade well and has a strong pipeline
of opportunities as we enter the second half of the financial year,
supported by strengthening regulatory and environmental drivers,
providing confidence that the Board's full year expectations will
be achieved whilst remaining cautious regarding macro-economic
conditions
Matt Jones, Chief Executive of Blancco, said:
"These results for the first six months of the financial year
show strong double-digit growth in revenue, profit and cash despite
the macro-economic challenges seen in many of the territories in
which we operate.
We announced at our last results in September that we had
restructured our global sales team with the appointment of new
leaders for our sales organisation. I'm pleased to report that they
have managed to have an immediate impact on the financial growth of
the company as demonstrated in these results as well as our
pipeline of opportunities.
We have also fully integrated the excellent team of
professionals that joined Blancco through the earnings accretive
acquisition of WipeDrive in June 2022. The vast majority of
WipeDrive employees now have a role in the larger Blancco group and
have supported our move to a single erasure solution for
customers.
Existing and upcoming regulation on data security coupled with
near-term legislation on sustainability means Blancco's proposition
is more relevant than ever before, and the Board remains confident
in the continued growth prospects of the company."
Note:
*Adjusted operating profit is operating profit excluding
expenses relating to share option schemes, exceptional costs &
incomes and the amortisation of acquired intangible assets.
Adjusted EBITDA is adjusted operating profit after adding back
depreciation and amortisation.
** Adjusted operating cash flow is operating cash flow excluding
taxation, payments relating to share option schemes, interest
payments & receipts and exceptional payments
Presentation and webcast:
A virtual briefing for analysts will be held today, 21 February
2023 at 15.00 GMT, via a live webcast and conference call
facility.
If you would like to join the webcast or conference call, please
contact Buchanan at blancco@buchanan.uk.com
S
For further information:
Blancco Technology Group plc Via Buchanan
Matt Jones, Chief Executive Officer
Adam Moloney, Chief Financial Officer
Investec Bank plc (Nominated Advisor & Joint +44 (0) 20 7597
Broker) 5970
Patrick Robb / Nick Prowting / Virginia Bull
Stifel (Joint Broker)
N ick Adams / Alex Price / Richard Short
+44 (0) 20 7466
Buchanan Communications Limited 5000
Chris Lane / Jack Devoy
blancco@buchanan.uk.com
About Blancco
Blancco Technology Group plc is a leading global provider of
mobile lifecycle solutions and secure data erasure solutions. For
more information, please visit www.blancco.com .
CHIEF EXECUTIVE'S REPORT
Business overview
We are delighted to be able to report a very robust set of
results for the first six months of our financial year, where Group
revenue grew by 16% (when adjusted for currency movements) despite
the challenging macro-economic environment and a strong comparative
period. While it is accepted that many companies are in a period of
financial constraint, data security is an area where corners cannot
be cut, and the adoption of software data erasure typically saves
money for companies that had previously used the physical
destruction of assets to ensure data security. The use of data
erasure software is also a cost-effective way for companies to
improve their environmental impact by vastly reducing their
generation of e-waste.
We are particularly pleased that the changes made to the
leadership of our sales and marketing function, as disclosed in
detail in our FY22 Annual Report, have seen an immediate
acceleration of growth in the business, as evidenced by these
results. Initiatives have been launched by the leadership team
regarding pricing and the further development of our channel
network which will continue to have a positive impact as the
actions arising from this work are rolled out across the
organisation.
In June 2022 we announced the acquisition of WipeDrive Inc
("WipeDrive") and have now fully integrated the company within the
wider Blancco group. The vast majority of WipeDrive employees have
filled critical roles in the enlarged organisation and assisted in
launching a single "best of breed" solution that took the best
features of the Blancco and WipeDrive solutions and which has been
well received by the Group's enlarged customer base.
Regulatory Environment
There are two forms of regulation that form the primary growth
drivers for Blancco;
i) Data Privacy & Security
EU General Data Protection Regulation ("GDPR") was the first
major piece of regulation which had the potential to impose severe
penalties on any companies which failed to protect the personal
data that they held. The maximum penalties under GDPR are the
higher of EUR20 million or 4% of global revenue. In 2022, Instagram
Meta was fined EUR405 million, the second largest fine ever issued
under GDPR, due to the exposure of personal details of minors. This
follows on from the record fine of EUR746 million issued to Amazon
in 2021.
Following the introduction of GDPR, we have seen similar
regulations being introduced in most other parts of the world.
Gartner has forecast that by the end of the 2023 calendar year,
they expect 75% of the world's population will have their personal
data protected under modern privacy regulations.
Of particular relevance, the implementation of the California
Privacy Rights Act ("CPRA") is effective from 1 January 2023 and
follows on from the California Consumer Privacy Act ("CCPA")
enacted in 2020. These regulations affect all organisations with
more than US$25 million of gross annual revenue that conduct
business in California. California is typically seen as a leading
state in the US with regard to the introduction of regulation and
we are already seeing several other states including Colorado,
Utah, Connecticut and Virginia implementing similar laws.
This increasingly regulated environment means that companies
must continue to ensure that customer data they store is protected.
A particularly relevant example for Blancco was the major US bank
that was fined a total of US$95 million by the US Office of the
Controller of Currency and the Stock Exchange Commission for
failing to properly dispose of devices containing Personally
Identifiable Information (PII) of 15 million customers. As part of
the corrective action taken, this bank is now a customer of
Blancco.
ii) Environmental
Unlike the Data Privacy regulation, environmental regulation is
very much at the early stages. The EU is again leading the way with
the European Green Deal which is a package of policy initiatives
aiming to set the EU on the path to a green transition, with the
ultimate goal of reaching climate neutrality by 2050. As part of
the Green Deal, the Corporate Sustainability Reporting Directive
(CSRD) includes the mandate to disclose sustainability information
under the reporting framework of the European Sustainability
Reporting Standards (ESRS). These regulations will be phased in
from 1 January 2024 and will require companies to provide
information on the environmental impact of their organisation
including its use of resources and the circular economy.
Similarly, the US Securities and Exchange Commission announced
in 2022 that it is proposing to require registrants to include
certain climate related disclosures in their registration
statements and periodic reports.
The challenge for Blancco has always been to persuade companies
which currently destroy their IT assets, to using data erasure as
the mechanism to ensure data security. Whilst the use of data
erasure is more time and cost effective than physical destruction,
IT departments have often been reluctant to consider alternative
methods. The focus on e-waste caused by the implementation of
directives forcing companies to disclose information on their
environmental impact is resulting in change as companies push
towards carbon neutral and net zero targets. Those charged with
improving the sustainability of companies will need to force change
through IT departments to ensure that redundant equipment no longer
contributes to e-waste statistics and instead helps the circular
economy.
Enterprise
The Enterprise market continues to be the fastest growing market
that Blancco solutions are sold into. In FY18, the period when we
originally set out Blancco's growth strategy , Enterprise was the
smallest of Blancco's three markets and represented 32% of Group
revenue. In the first half of FY23, Enterprise represented 39% of
Group revenue and it is now Blancco's largest market. Revenue in
Enterprise grew by 33% (CER +24%) in the period to GBP9.4 million
(H1 FY 2022: GBP7.1 million). In FY18, 42% of Enterprise revenue
came through Channel partners. In the period, revenue from Channel
partners increased by 30% to GBP5.2 million (H1 FY 2022: GBP4.0
million) and now represents 56% of Enterprise revenue.
We anticipate that the regulatory drivers around data privacy
and sustainability will continue to impact the largest companies in
the world which tend to store the greatest amounts of data. As a
result, we believe that Enterprise will continue to be the fastest
growing market that Blancco sells to and much of this growth will
be driven by further investment with our channel partners whose
sales will represent an increasingly large proportion of our
Enterprise revenues. We continue to review our channel partner
base, investing the most effort with the partners that have the
greatest potential for revenue generation and engaging with new
partners who can assist us with growing the business.
An example would be the new partnership we have established with
Tata Consultancy Services ("TCS"). TCS is an Indian multinational
information technology services and consulting company with over
613,000 employees in 55 countries. TCS is seeking to utilise
Blancco within its customer base to maximise their sustainability
and data privacy credentials, primarily within the healthcare and
financial services verticals. A material pipeline of opportunities
has already been generated prompting Blancco to employ a dedicated
resource to work within TCS, promoting the Blancco offering.
The acquisition of WipeDrive, completed in June 2022, has
enabled us to further strengthen our market position. WipeDrive
Enterprise customers generated revenue of GBP0.4 million in the
period. WipeDrive customers are being migrated to the new "best of
breed" solution which will make WipeDrive revenue impossible to
separate from Blancco revenue in future financial disclosure. One
of the features we were pleased to introduce as part of this
merging of technologies is the development of a Microsoft Windows
interface for our erasure solution. This user interface improvement
has helped us to win a large contract with one of the biggest
software companies in the world. There is significant opportunity
to grow that account much further, as there is in many of our
larger accounts. WipeDrive has also helped grow our presence in the
US market, particularly with government agencies.
IT Asset Disposition ("ITAD")
Blancco's ITAD customers operate as experts in the disposal of
end-of-life IT assets, primarily for companies which are smaller
than those which purchase licences directly from Blancco in the
Enterprise market. We reported in the FY22 financial year that
these customers had experienced a period of accelerated growth as
employees returned to offices following the pandemic. For many
companies, a backlog of end-of-life hardware needed to be processed
and many companies had to reconfigure office space and equipment
distribution to accommodate a more hybrid working workforce. This
trend led to revenue growth of 23% when adjusting for foreign
exchange movements in FY22. This has continued into the first half
of FY23 with revenue growing by 30% (CER +25%) to GBP9.0 million
(H1 FY 2022: GBP6.9 million).
With most parts of the world now having returned to a steadier
pattern of work, there are signs that this period of accelerated
growth is settling to more normal patterns. From FY18 to FY22, ITAD
revenue has grown from GBP8.6 million to GBP13.8 million, an annual
growth rate of 13%. Blancco has a very large share of the data
erasure market within ITADs which limits our ability to
substantially grow market share. However, the data privacy and
sustainability drivers that are apparent in the Enterprise market
are also leading to growth in the overall market that ITADs
address, which generally comprises smaller companies which engage
with third parties to dispose of their end-of-life equipment. As a
result, the growth in ITAD has continued to exceed our initial
expectations and we anticipate that the growth seen since FY18
should be sustainable in the coming periods. The acquisition of
WipeDrive has also enabled us to strengthen our position in this
market. WipeDrive ITAD customers generated revenue of GBP0.5
million in the first six months of FY23.
This market leading position has been strengthened further
recently by the announcement of our new partnership with Ebay. ITAD
and Mobile customers will be able to use the Blancco solution to
categorise or grade the condition of devices for sale on the Ebay
platform on a consistent basis. This will give buyers confidence in
purchasing computer equipment or mobile devices on the platform,
making it simpler for ITADs and Mobile processors to recycle
equipment from which they have erased the data after collecting it
from their customers.
Mobile
Given the current macroeconomic backdrop, mobile continues to be
the most challenging market for Blancco. IDC reported that new
smartphone sales in the first three quarters of 2022 were 9.7%
lower than the comparative period of 2021. There is a combination
of factors which are likely to have contributed to this trend -
supply chain issues and component shortages have continued to be a
constraint, fears of a reduction in disposable incomes, foreign
currency movements and a lack of innovation in the latest
generation of handsets are all thought to be contributory factors.
Blancco's revenue is largely driven by the volume of pre-owned
handsets received by our customers when new handsets are purchased,
and older handsets are traded in. All Blancco Mobile customers have
reported reduced volumes of handsets being processed in the
period.
Despite this background, Blancco Mobile revenue fell by only 1%
(CER -3%) to GBP5.6 million (H1 FY 2022: GBP5.7 million) which
indicates an increase in market share given that the size of the
overall market has reduced. There are no immediate signs of an
improvement in the Mobile market, and we expect it to remain
relatively flat for the next 12 months. However, in the medium term
we continue to believe that the Mobile market will improve as the
handsets currently held by consumers continue to age and economic
conditions improve. We also believe that consumers will be more
inclined to trade in older handsets when buying a new handset than
they have been in the past due to the increasing value of aging
handsets. While the revenue trend doesn't show the same growth that
we see in ITAD and Enterprise, it continues to be a materially
profitable part of the business which contributes significantly to
the profitability of the Group as a whole.
Summary and Outlook
The results announced today demonstrate the strong progress
being made by the business and give us further confidence in
continued growth in revenue, profit and cash as we look ahead. Data
privacy regulation has been driving much of the growth seen in
recent years whilst the incoming regulation on sustainability
presents real opportunities for the future.
The new sales management team has now been with the Company for
over six months and has introduced initiatives around channel
development and pricing, the positive impact of which will come
through in the near term. The impact of pay increases awarded in
our usual pay review in October and new headcount that joined the
Company in the first half of the financial year tends to reduce
operating margins in the second half of the year. However, the
Company continues to trade well and has a strong pipeline of
opportunities as we enter the second half of the financial year
providing confidence that the Board's full year expectations will
be achieved.
Matt Jones
Chief Executive Officer
CHIEF FINANCIAL OFFICER'S REPORT
Revenue
Revenue in the period grew by 22% (CER +16%) to GBP24.0 million
(H1 FY 2022: GBP19.7 million). The strengthening of the US dollar
had a materially positive impact on the translated value of sales
in the US in the Period, with North America revenue growing by 39%
to GBP8.0 million (H1 FY 2022: GBP5.8 million) but the growth
reducing to 22% when adjusted for foreign currency movements.
Revenue grew strongly in each of the three territories in which
Blancco operates.
Growth CER
6 months ended rate growth
Organic
31 December 31 December growth
2022 2021 rate
Revenue (GBP millions) 24.0 19.7 +22% +17% +16%
======================== ============ ============ ======= ======== ========
Revenue by geography
======================== ============ ============ ======= ======== ========
North America 8.0 5.8 +39% +22% +22%
EMEA 8.7 7.7 +12% +12% +10%
APAC 7.3 6.2 +19% +19% +19%
======================== ============ ============ ======= ======== ========
Revenue by market
type
======================== ============ ============ ======= ======== ========
Enterprise 9.4 7.1 +33% +27% +24%
ITAD 9.0 6.9 +30% +22% +25%
Mobile 5.6 5.7 -1% -1% -3%
======================== ============ ============ ======= ======== ========
Profitability Measures
Gross margins remained high at 98% with only a small amount of
hardware and third-party licences accounted for as cost of goods
sold. The strengthening of the US dollar had a positive impact on
revenue but a detrimental effect on our US cost base, although this
does create a natural hedge, which results in a modest favourable
foreign exchange impact at operating profit level.
Like many other companies, we have also seen the increasing cost
of supplies and wage inflation during the period. As a result, our
adjusted administrative expenses have increased by 22 % to GBP 18.4
million (H1 FY 2022: GBP 15.1 million). Despite these cost
pressures, our adjusted operating profit margin has increased to
21% (H1 FY 2022: GBP20%) . These margins have increased gradually
over recent years with the adjusted operating margin in FY18 being
11%. We continue to budget to increase these margins on an ongoing
annualised basis, although they are expected to contract as usual
in the second half of the year when pay increases for staff awarded
in the first half of the year have a full impact. Adjusted
operating profit for the period increased by 30% to GBP5.1 million
(H1 FY 2022: GBP4.0 million). Operating profit for the period was
GBP 2.7 million (H1 FY 2022: GBP 1.9 million).
6 months 6 months
ended 31 ended 31
December December
2022 2021
GBP'000 GBP'000
=============================================== ===== =========== ===========
Operating profit 2,720 1,916
------------------------------------------------------- ----------- -----------
Amortisation of acquired intangible
assets 1,673 1,337
Share-based payments charge 751 699
------------------------------------------------------- ----------- -----------
Adjusted operating profit 5,144 3,952
------------------------------------------------------- ----------- -----------
Depreciation of property, plant and equipment 632 554
Amortisation of intangible assets 2,204 1,912
(Profit)/loss on disposal of property,
plant and equipment (1) 1
------------------------------------------------- --- ----------- -----------
Adjusted EBITDA 7,979 6,419
------------------------------------------------- --- ----------- -----------
Adjusted EBITDA for the period grew by 24% to GBP8.0 million (H1
FY 2022: GBP6.4 million), maintaining an adjusted EBITDA margin of
33 % (H1 FY22: 33 %).
Balance Sheet
Net funds increased to GBP7.9 million (30 June 2022: GBP6.2
million). We anticipate further strong cash generation in the
second half of the financial year. However, a liability of GBP1.2
million is provided for in the balance sheet in respect of the
contingent consideration of up to US$1.5 million that could become
due to the vendors of WipeDrive in June 2023. The payment is
dependent on the retention of WipeDrive customers for a period of
12 months following the acquisition. We are pleased to be able to
report that the retention of WipeDrive customers continues to be
very positive and it is expected that the full payment will be made
in June 2023.
Adam Moloney
Chief Financial Officer
Consolidated Statement of Comprehensive Income
for the six months ended 31 December 2022
6 months 6 months Year ended
ended ended
31 December 31 December 30 June
2022
2022 2021 (audited)
(unaudited) (unaudited)
Note GBP'000 GBP'000 GBP'000
==================================== === ===== ============== ============= ===========
Revenue 24,025 19,676 39,799
Cost of sales (486) (588) (1,290)
========================================= ===== ============== ============= ===========
Gross profit 23,539 19,088 38,509
Administrative expenses (including
depreciation and amortisation) (20,819) (17,172) (36,627)
========================================= ===== ============== ============= ===========
Operating profit 2,720 1,916 1,882
----------------------------------------- ----- -------------- ------------- -----------
Acquisition costs - - 542
Amortisation of acquired
intangible assets 1,673 1,337 2,683
Share-based payments charge 751 699 1,387
----------------------------------------- ----- -------------- ------------- -----------
Adjusted administrative expenses (18,395) (15,136) (32,015)
----------------------------------------- ----- -------------- ------------- -----------
Adjusted operating profit 5,144 3,952 6,494
----------------------------------------- ----- -------------- ------------- -----------
Finance income 1 1 6
Finance costs (115) (85) (201)
========================================= ===== ============== ============= ===========
Profit before tax 2,606 1,832 1,687
Taxation (364) (302) 364
Profit for the period 3 2,242 1,530 2,051
========================================= ===== ============== ============= ===========
Attributable to:
Equity holders of the company 2,227 1,505 2,024
Non-controlling interests 15 25 27
========================================= ===== ============== ============= ===========
Profit for the period 2,242 1,530 2,051
========================================= ===== ============== ============= ===========
Earnings per share
Basic 2 2.96 p 2.01 p 2.71p
Diluted 2 2.91 p 1.94 p 2.64p
Consolidated Statement of Comprehensive
Income
for the six months ended 31 December
2022
Year ended
6 months 6 months
ended ended 30 June
31 December 31 December
2022 2021 2022
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
=========================================== === ============== ============= ===========
Profit for the period 2,242 1,530 2,051
Other comprehensive income/(loss)
- amounts that may be reclassified
to profit or loss in the future:
Exchange differences arising
on translation of foreign entities 1,729 (995) 1,632
================================================ ============== ============= ===========
Total comprehensive income for
the period 3,971 535 3,683
================================================ ============== ============= ===========
Attributable to:
Equity holders of the Company 3,938 523 3,691
Non-controlling interests 33 12 (8)
================================================ ============== ============= ===========
Total comprehensive income for
the period 3,971 535 3,683
================================================ ============== ============= ===========
Condensed Consolidated Balance
Sheet
as at 31 December 2022
30 June
31 December 31 December
2022 2021 2022
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
================================== === ============== ============== ===========
Assets
Non-current assets
Goodwill 57,249 47,555 56,040
Other intangible assets 19,093 17,928 19,928
Property, plant and equipment 2,505 2,449 2,970
Deferred tax assets 100 99 107
78,947 68,031 79,045
====================================== ============== ============== ===========
Current assets
Inventory 163 166 216
Trade and other receivables 10,964 7,820 8,954
Current tax asset 690 579 641
Cash 8,443 10,205 8,195
20,260 18,770 18,006
====================================== ============== ============== ===========
Total assets 99,207 86,801 97,051
======================================= ============== ============== ===========
Current liabilities
Trade and other payables (8,721) (7,867) (9,433)
Contingent consideration (1,230) - (1,347)
Current tax liability (609) (380) (291)
(10,560) (8,247) (11,071)
Non-current liabilities
Borrowings (500) - (2,000)
Other payables (1,727) (1,268) (2,265)
Deferred tax (3,958) (2,766) (3,971)
(6,185) (4,034) (8,236)
====================================== ============== ============== ===========
Total liabilities (16,745) (12,281) (19,307)
======================================= ============== ============== ===========
Net assets 82,462 74,520 77,744
======================================= ============== ============== ===========
Equity
Called up share capital 1,514 1,513 1,513
Share premium account 21,103 21,103 21,103
Merger reserve 5,861 5,861 5,861
Capital redemption reserve 417 417 417
Translation reserve 3,568 (792) 1,857
Retained earnings 49,411 45,843 46,438
==================================== ======= ======= =======
Total equity attributable
to equity holders of the Company 81,874 73,945 77,189
Non-Controlling interest reserve 588 575 555
==================================== ======= ======= =======
Total equity 82,462 74,520 77,744
==================================== ======= ======= =======
Condensed Consolidated Statement
of Changes in Equity
for the six months ended 31
December 2022
6 months 6 months Year
ended ended ended
30 June
31 December 31 December
2022 2021 2022
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
====================================== === ============== ============= ===========
Balance at the start of the
period 77,744 74,901 74,901
Total comprehensive income for
the period 3,971 535 3,683
Purchase of Company's own shares - (1,546) (1,546)
Issue of shares 1 1 1
Share based payment charge inclusive
of deferred tax 746 629 705
=========================================== ============== ============= ===========
Balance at the end of the period 82,462 74,520 77,744
=========================================== ============== ============= ===========
Consolidated Cash Flow Statement
for the six months ended 31 December
2022
6 months 6 months
ended ended Year ended
31 December 31 December 30 June
2022 2021 2022
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
======================================== ============= ============= ============
Profit for the period 2,242 1,530 2,051
========================================= ============= ============= ============
Adjustments for:
Net finance charges 114 84 195
Tax expense/(income) 364 302 (364)
(Profit)/loss on disposal of property,
plant and equipment (1) 1 -
Depreciation on property, plant
and equipment 632 554 1,119
Amortisation of intangible assets 2,204 1,912 3,923
Amortisation of acquired intangible
assets 1,673 1,337 2,683
Share-based payments expense 751 699 1,387
========================================= ============= ============= ============
Operating cash flow before movement
in working capital 7,979 6,419 10,994
----------------------------------------- ------------- ------------- ------------
Acquisition costs - - 542
Adjusted EBITDA 7,979 6,419 11,536
------------- -------------
Decrease/(increase) in inventories 57 (54) (69)
Increase in receivables (1,828) (1,715) (2,092)
(Decrease)/increase in payables
and accruals (928) (37) 1,496
Cash generated from continuing
operations 5,280 4,613 10,329
Acquisition costs payments - - 355
Share-based payments 61 42 143
Adjusted operating cash flow 5,341 4,655 10,827
------------- -------------
Interest paid on lease liabilities (57) (55) (110)
Other finance costs paid - - (25)
Tax paid (138) (187) (261)
========================================= ============= ============= ============
Net cash generated from operating
activities 5,085 4,371 9,933
Cash flows from investing activities
Purchase of property, plant and
equipment (123) (62) (157)
Proceeds from sale of property, 7 - -
plant and equipment
Purchase and development of intangible
assets (2,520) (2,189) (4,453)
Acquisition of subsidiaries, net
of cash acquired (111) - (6,873)
Net cash used in investing activities (2,747) (2,251) (11,483)
Cash flows from financing activities
Payment of the principal portion
of lease liabilities (477) (373) (784)
Purchase of Company's own shares - (1,546) (1,546)
Issue of shares, net of fees 1 1 1
Interest received 1 67 73
Interest paid (54) (25) (58)
Drawdown of borrowings - - 3,000
Repayment of borrowings (1,500) - (1,000)
Net cash used in financing activities (2,029) (1,876) (314)
Net increase/(decrease) in cash
and cash equivalents 309 244 (1,864)
Other non-cash movements - exchange
rate changes (61) (110) (12)
Cash and cash equivalents at the
beginning of period 8,195 10,071 10,071
========================================= ============= ============= ============
Cash and cash equivalents at end
of period 8,443 10,205 8,195
========================================= ============= ============= ============
Borrowings (500) - (2,000)
Net funds 7,943 10,205 6,195
========================================= ============= ============= ============
Notes to the Half Year Report
For the six months ended 31 December 2022
1. Basis of Preparation
These half yearly results have been prepared on the basis of the
accounting policies to be adopted for the year ended 30 June 2023.
These are in accordance with the Group's accounting policies as set
out in the latest audited annual financial statements for the year
ended 30 June 2022. The directors are satisfied the going concern
assumption remains appropriate and the results have been prepared
on that basis.
All UK adopted International Accounting Standards and
interpretations currently endorsed by the UK Endorsement Board, in
conformity with the requirements of the Companies Act 2006 and as
required to be adopted by AIM listed companies, have been applied.
AIM listed companies are not required to comply with IAS 34
'Interim Financial Reporting' and accordingly the Company has taken
advantage of this exemption.
The financial information in these half yearly results does not
constitute statutory accounts for the six months ended 31 December
2022 and should be read in conjunction with the Group's annual
financial statements for the year ended 30 June 2022.
The condensed consolidated half yearly financial statements for
the six months to 31 December 2022 have not been audited or
reviewed by auditors pursuant to the Auditing Practices Board
guidance on Review of Half yearly Financial Information.
These unaudited half yearly results were approved by the Board
of Directors on 20 February 2023.
2. Earnings per share (EPS)
6 months 6 months
ended ended Year ended
31 December 31 December 30 June
2022 2021 2022
(unaudited) (unaudited) (audited)
Pence Pence Pence
======================================== ============ ============ ===========
Basic earnings per share 2.96 p 2.01 p 2.71 p
Diluted earnings per share 2.91 p 1.94 p 2.64 p
Adjusted earnings per share 5.54 p 4.23 p 7.81 p
Diluted adjusted earnings per
share 5.46 p 4.08 p 7.62 p
======================================== ============ ============ ===========
6 months 6 months
ended ended Year ended
31 December 31 December 30 June
2022 2021 2022
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
======================================== ============ ============ ===========
Profit for the period 2,242 1,530 2,051
Profit attributable to non-controlling
interests (15) (25) (27)
======================================== ============ ============ ===========
Profit attributable to equity
holders of the Company 2,227 1,505 2,024
======================================== ============ ============ ===========
Reconciliation to adjusted profit:
Amortisation of intangible assets 1,673 1,337 2,683
Acquisition costs - - 542
Amortisation of bank fees 4 4 8
Share based payments 751 699 1,387
Tax impact of above adjustments (485) (387) (800)
======================================== ============ ============ ===========
Adjusted profit for the period 4,170 3,158 5,844
======================================== ============ ============ ===========
Number of shares '000s '000s '000s
Weighted average number of
shares 75,296 74,691 74,776
Impact of dilutive share options 1,127 2,646 1,877
Diluted 76,423 77,337 76,653
=================================== ======= ======= =======
The dilutive share options are in respect of the shares awarded
under the Blancco Performance Share Plan and Sharesave Plan, full
details of which are disclosed in the 2022 Annual Report and
Accounts.
3. Profit for the Period
Profit for the Period for the Group has been arrived at after
charging/(crediting):
6 months 6 months
ended 31 ended 31 Year ended
December December 30 June
2022 2021 2022
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
======================================== ============ ============ ===========
Depreciation of property, plant and
equipment - owned 132 127 250
Depreciation of property, plant and
equipment - right-of-use asset 500 427 869
(Profit)/loss on disposal of property,
plant and equipment (1) 1 -
Amortisation of intangible assets 3,877 3,249 6,606
Expenses related to leases of
low-value assets 11 11 27
Cost of inventories recognised
as an expense 132 145 429
Research & Development expense 674 509 1,191
Staff costs 11,279 9,572 19,777
Net foreign exchange loss/(gain) 2 (52) 220
========================================== ============ ============ ===========
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 rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR DBLFLXLLZBBF
(END) Dow Jones Newswires
February 21, 2023 02:00 ET (07:00 GMT)
Blancco Technology (LSE:BLTG)
Historical Stock Chart
From Apr 2024 to May 2024
Blancco Technology (LSE:BLTG)
Historical Stock Chart
From May 2023 to May 2024