Blancco Technology Group PLC (LON:BLTGB) expects to report FY17 revenue growth of 40%, in line with our forecast. After providing for a previously flagged late payer, adjusted operating profit is expected to be c £5.5m. We have revised our forecasts to reflect the bad debt provision and slightly higher operating expenses, as well as reflecting the recent fund raise. We reduce our FY17e normalised EPS by 42% and FY18e and FY19e by 12%. We forecast net cash of £1.5m at the end of FY17.
FY17 revenues in line; bad debt provision hits profit
Blancco expects to report FY17 revenue growth of c 40% (+30% constant currency), which is in Iine with our forecast. The company has decided to provide against a large debtor (previously flagged as overdue). Of the £3.5m receivable, £2.2m had been recognised as revenue and the remainder was in deferred income. Taking into account the £2.2m cost of the provision, the company expects to report adjusted operating profit (AOP) of at least £5.5m and EBITDA of at least £7.0m.
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