Positive revenue momentum continues at Blancco

Global provider of mobile device diagnostics and secure data erasure solutions Blancco issued a pre-close trading update for the year to 30 June on Thursday, reporting that the positive revenue momentum reported at the interim results had continued through the second half of the year.

The AIM-traded company said that for the financial year ending 30 June, revenues increased approximately 40% over the prior year and approximately 30% in constant currency, in line with market expectations.

“However, cash flow and net cash are below market expectations due to the non-payment of £3.5m of receivables, the majority undertaken in the prior year,” the board explained.

“Taking a prudent approach to these receivables we have decided to provide against them by taking a charge of £2.2m, resulting in adjusted operating profits of not less than £5.5m and adjusted EBITDA of not less than £7.0m.”

That reflected the group's intention to apply a more prudent approach to revenue and income recognition on that type of contract in the future, the board explained.

Blancco would be announcing its final results on 3 October.