1st May 2019 09:49
LONDON (Alliance News) - Shares in Blancco Technology Group PLC rose on Wednesday after it said it expects operating profit and revenue for its 2019 financial year to be ahead of market consensus.
As well, Blancco said it has renewed and expanded a three-year contract with an unnamed US-based software company.
Shares in the mobile diagnostics company were 15% higher at 141.00 pence on Wednesday.
During the year ending June 30, Blancco has continued to develop relationships with its channel partners, by renewing and winning several contracts with international clients in several regions.
In addition, Blancco is continuing with its cost investment initiatives put in place since September. The initiatives are ongoing and are yet to be fully costed, it said.
As a result, adjusted operating profit and revenue for the year are expected to be ahead of market expectations. For the 2018 financial year, Blancco's adjusted operating profit was GBP3.3 million on revenue was GBP27.5 million.
Under the renewed US contract's terms, Blancco will deliver its Drive Erasure Solution across data centres around the world, generating USD1.2 million in revenue over the contract's duration with the potential to increase.
Most of the revenue generated will benefit Blancco in the 2020 and 2021 financial years.
"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," said Chief Executive Officer Matt Jones.
"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," Jones added.
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