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Blancco Technology shares up as appointment of new chief financial officer offsets mixed trading update

The AIM-listed firm said Adam Moloney – who was chief financial officer at Eckoh PLC between 2005 and 2017– will replace its current interim chief financial officer Simon Herrick
Blancco noted that, during this time at Eckoh, Moloney managed the integration of "various significant" US and UK acquisitions

Blancco Technology Group PLC (LON:BLTG) saw its shares rise on Wednesday as the data security firm named Adam Moloney as its chief financial officer from July 23, news of which helped offset a slightly disappointing trading update.

The AIM-listed firm said Moloney – who was chief financial officer at Eckoh PLC (LON:ECK) between 2005 and 2017 – will replace its current interim chief financial officer Simon Herrick. The firm noted that, during this time at Eckoh, Moloney managed the integration of "various significant" US and UK acquisitions.

READ: Eckoh PLC upbeat about its future and keen to build on progress in the US

It added that Herrick, who was appointed Blancco’s interim CFO in March 2017, as well as serving as interim chief executive officer from September 2017 until March 2018, will step down from the board on the appointment of Moloney. The group added that Herrick will remain at the firm to ensure a "smooth handover."

Commenting on his appointment, Moloney said: "The business has a strong portfolio of technology solutions and is well placed to grow quickly in the current regulatory environment.”

Trading update mixed

However, in a separate full-year trading update released today, Blancco revealed that its revenue for the year to the end of June “was modestly ahead of the same period last year, albeit not as positive as anticipated and was impacted by the strengthening of Sterling.”

The group added: “New client contracts won during the second half more than fully mitigated the impact of the prior year's non-repeating deals producing 7% second half revenue growth in constant currency.”

Blancco said its adjusted operating profit (AOP) margin percentage was higher than full-year expectations at around 11% reflecting the group’s September 2017 reorganisation and a closer cost management in the balance of the year.

It added that second half sales and AOP growth were accompanied by a positive second half cash flow, reducing net debt from £3.5mln at the half year to £2.8mln at the year-end, an improvement on previous guidance following improved second-half underlying earnings (EBITDA) and customer cash collection.

Matt Jones, Blancco’s chief executive who joined the group in March 2018. commented: “I am making good progress with my strategic review and look forward to executing a plan to fully exploit the market opportunities ahead of Blancco."

The group said it will release its full-year results on 25 September 2018.

In late afternoon trading, Blancco shares were 4.1% higher at 77.00p.

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