Our business model is founded on a platform of services and innovation which drives recurring income across multiple complementary lines of business. This enables us to afford the best operating platform in our segment, while delivering attractive profitability and shareholder returns.
The Group has evolved significantly in recent years and now comprises two main businesses with distinct characteristics:
The Group’s software assets, comprising Blancco and Xcaliber Technologies, address the huge challenge for enterprises of maintaining usability and data security across a wide range of networked devices.
Blancco delivers a unique data erasure proposition across the widest range of devices and network storage environments. It is the clear global market leader in a rapidly growing sector, as companies seek to improve security, reduce risk of data breaches, and ensure compliance with demanding regulations.
For its clients, Blancco typically replaces existing data destruction approaches which are not permanent, certified, auditable, or centrally-managed, or which result in the physical destruction of valuable assets. The approach is materially relevant to all enterprises around the world, resulting in a multi-billion dollar target addressable market for the business. Blancco’s data erasure revenues are more than seven times larger than those of its nearest competitor.
Xcaliber is a provider of smartphone diagnostic and issue resolution software. Xcaliber and Blancco together address two fundamental hygiene factors associated with using smartphones, maintaining device functionality and data security. These businesses are based on an intangible asset base and they have the benefit of scaling without a direct requirement for additional operational investment or complexity.
The Group’s Aftermarket Services businesses address the problem of faulty and damaged hardware, requiring excellence in complex operational execution and building relationships with global clients.
Depot Solutions is one of the world’s leading operators in client orientated repair and refurbishment facilities around the world. Our international network of repair centres provides product repair, refurbishment, parts management and logistics services for mobile, IT and B2B infrastructure product vendors, and their sales channels, insurers and end users.
Our clients are global market leaders in their respective fields. Historically, they have outsourced their repairs services to partners like Regenersis but on a one country at a time basis. Increasingly, our customers are managing the delivery of the aftermarket services through either a regional of global basis.
In partnership with leading insurers, our Digital Care operations deliver innovative product insurance and extended warranty programmes for our clients, protecting customers’ investments in mobile technology products.
Our industry-leading fault diagnostics and issue resolution technologies include the In-Field Tester for set-top boxes, and our SmartChk applications suite for smartphones. These advanced diagnostic platforms improve consumer satisfaction with their devices and materially reduce the incidence and cost of product returns for our clients.
As stated in the 2015 Final Results (announced September 2015), the Board is exploring various strategic alternatives to maximise shareholder value that may include the potential sale of the Aftermarket Services business. Any such sale would reposition the Group as a pure-play software business and enable a significant distribution of cash to shareholders. The Board aims to successfully conclude its exploration of strategic alternatives by March 2016.
Should the Group transform into a pure software business it is likely that strategy would shift to invest more in growth and sector leadership, in line with common practice in the high-growth software sector.