Fighting the global cybercrime epidemic
​Cybercrime has become the business world's #1 threat according to a recent poll by the BBC. In fact, at the last count in June 2014, the US Center for Strategic and International Studies reckoned that online theft costs the global economy an eye-watering $400bn annually, or 0.5% of GDP. This clearly demands urgent attention, such as deploying Blancco's proprietary data erasure software.
Blancco is an extremely high quality asset, possessing an almost impregnable position in this rapidly expanding data erasure niche - especially after the strategic acquisition of #2 player Tabernus in September 2015. As such, we value the division at 6x sales (equivalent to 18.2x FY16 EBITA, excluding corporate expenses) which is conservatively 10% less than its US cyber-security peers (average 6.7x), despite being more profitable and growing at a faster pace.
The disposal of Aftermarket Services (ie Depot Solutions, 'Set Top box' diagnostics and DigitalCare) is progressing according to plan with "several indicative offers" already received. We anticipate this process will close by 31st March, and generate gross proceeds of between £60m-£80m.
In terms of trading, RGS said this morning that it was on track to hit its FY16 targets (consensus adjusted PBT of £13.9m), with Executive Chairman Matthew Peacock adding that both divisions were trading "in line with expectations".
Consequently, we make no change to our forecasts or 232p/share price target.
Regeneus is engaged in the development and commercialization of proprietary adipose-derived stem cell technologies used by physicians and veterinarians to treat musculoskeletal conditions in humans and animals.
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