Blancco Campaign Update #3

This blog gives you the latest topical news plus some informal comments on them from ShareSoc’s directors and other contributors. These are the personal comments of the authors and not necessarily the considered views of ShareSoc. The writers may hold shares in the companies mentioned. You can add your own comments on the blog posts, but note that ShareSoc reserves the right to remove or edit comments where they are inappropriate or defamatory.

Campaign members will be aware that Blancco has published its Report and Accounts for year ending June 2019. They show an improved performance and positive cash flow. As ever, the accounts are complex, with significant adjustments. The bottom line is only positive owing to “post tax profit from discontinued operations”. Goodwill and other intangible assets exceed the book value of shareholders’ equity. Having said that, the new CEO and new CFO seem to have got a grip and boosted revenues. Post year end, they raised £10 million in new equity and made a £4.7 million acquisition, partly in shares and partly in cash. The new team is well rewarded in share based payments and other incentives.

The AGM has been called for December 12th (Election day) in Huntingdon, where they have their Head Office. The agenda seems relatively uncontentious, apart from the usual disapplication of pre-emption rights. I am, unfortunately, unable to attend. If any member of the group is able to do so, please issue a feedback to this group.

You will recall that the restatements of the accounts for year ending June 2016 led to a loss in shareholder value of £135 million. The previous CEO exercised Stock Appreciation Rights prior to the disclosure of these restatements. We referred these issues to the Financial Conduct Authority (FCA) in January 2018 and, via the Financial Reporting Council (FRC), to the Institute of Chartered Accountants for England & Wales (ICAEW) in February 2018. Despite reminders we have heard nothing of substance from either body. ShareSoc is sending a further, sharp, follow-up to the Chairman of FCA and the Head of Investigation at ICAEW.

Go here to learn about our campaign.

Bruce Noble, Blancco Campaign Co-ordinator

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