Blancco Technology Group plc (LON:BLTG): When Will It Breakeven?
Blancco Technology Group plc's (LON:BLTG): Blancco Technology Group plc, together with its subsidiaries, provides mobile device diagnostics and data erasure services in the United States, the United Kingdom, the Asia Pacific, and internationally. The UK£91m market-cap company announced a latest loss of -UK£638.0k on 30 June 2019 for its most recent financial year result. Many investors are wondering the rate at which BLTG will turn a profit, with the big question being “when will the company breakeven?” In this article, I will touch on the expectations for BLTG’s growth and when analysts expect the company to become profitable.
See our latest analysis for Blancco Technology Group
BLTG is bordering on breakeven, according to the 3 Software analysts. They anticipate the company to incur a final loss in 2021, before generating positive profits of UK£900k in 2022. So, BLTG is predicted to breakeven approximately 3 years from now. In order to meet this breakeven date, I calculated the rate at which BLTG must grow year-on-year. It turns out an average annual growth rate of 77% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, BLTG may become profitable much later than analysts predict.
Given this is a high-level overview, I won’t go into details of BLTG’s upcoming projects, though, bear in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing I’d like to point out is that BLTG has managed its capital prudently, with debt making up 10% of equity. This means that BLTG has predominantly funded its operations from equity capital,and its low debt obligation reduces the risk around investing in the loss-making company.
Next Steps:
This article is not intended to be a comprehensive analysis on BLTG, so if you are interested in understanding the company at a deeper level, take a look at BLTG’s company page on Simply Wall St. I’ve also put together a list of important aspects you should further examine:
Valuation: What is BLTG worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether BLTG is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Blancco Technology Group’s board and the CEO’s back ground.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
