Revenue, profit and cash well above expectations at Blancco
Data erasure and mobile technology company Blancco said in a trading update on Tuesday that, following the “significant” growth experienced in the second half of the last financial year, it had continued to benefit from growth in sustainability and governance.
The AIM-traded firm said that as a result, it had achieved strong growth in revenue in the first half of the 2022 financial year, above the board's expectations, despite the strengthening value of sterling.
IT asset disposition (ITAD) had seen “particularly pleasing” revenue growth as a result of pent-up demand unwinding as businesses returned to offices, where there was redundant equipment, combined with a longer-term trend of companies seeking more sustainable solutions to the management of IT equipment as environmental, social and governance (ESG) considerations became increasingly important.
Blancco said it had converted a number of new business opportunities during the first half, and was continuing to benefit from a “strong” pipeline, which had further strengthened during the period.
Revenue and pipeline generated with channel partners also increased significantly, the board reported.
The operational gearing inherent within the business, combined with continued cost savings, had resulted in anticipated operating margins for the first half increasing significantly.
As a result, adjusted operating profit, adjusted EBITDA and cash were all expected to be comfortably above the board's expectations.
“We are delighted to be able to report growth in revenue, profit and cash above expectations, demonstrating that the quality of Blancco's solutions, which combined with significant structural growth, are leading to visible and growing value creation for our shareholders,” said chief executive officer Matt Jones.
“The tailwinds of sustainability and governance continue to drive positive behaviours among our customers which we fully expect to create long-term demand for our market leading solutions.”
Blancco said it would announce its unaudited interim results for the six months ended 31 December on 22 February.
At 1344 GMT, shares in Blancco Technology Group were up 4.72% at 233p.