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Regenersis PLC (RGS)

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Tuesday 14 January, 2014

Regenersis PLC

Trading Update and Notice of Results

RNS Number : 5527X
Regenersis PLC
14 January 2014
 



14 January 2014

 

REGENERSIS PLC

TRADING UPDATE AND NOTICE OF RESULTS

 

Regenersis Plc ("Regenersis" the "Company" or the "Group"), a strategic outsourcing partner to many of the world's leading consumer technology companies, issues this trading update in advance of its results for the six months to 31 December 2013, which will be announced on 17 March 2014.

 

Trading

 

The Board is pleased to confirm that performance for the half-year is expected to be in line with market expectations in a period that has again delivered double-digit sales and profit growth. Both the Emerging Markets and Advanced Solutions divisions are expected to deliver good earnings growth with the progress in the Advanced Solutions division being notable and most encouraging.  Additionally, the Group's most recent acquisition, Digicomp, was successfully integrated and made a positive contribution.

 

Net debt at the half year will be slightly higher than market expectations, due primarily to working capital investments made in the Advanced Solutions division.

 

Operating Highlights

 

Having adopted a policy of focusing the Group on larger, higher value contracts, there has been a pleasing increase in both the number and the quality of significant new business wins during the period, which will begin to contribute in the second half of the year.  These included a promising mix of cross-selling existing clients into new geographies, advanced solutions and technically-differentiated business; as well as new blue-chip clients won through competitive bids.  

 

Cross-selling opportunities won in the period include: 

 

·      Entry of the B2B business into the USA with an existing European client, which will lead to the opening of the Group's first US depot facility in Memphis in spring 2014;

·      A large existing mobile OEM client deciding to use our depot services in South Africa;

·      A motherboard repair contract for a global mobile OEM client to be carried out in Poland, representing an emerging, technically-demanding trend for component-level repair as opposed to component exchange;

·      A global refurbishment contract for a major mobile OEM with our partner Eco Asia.

 

Through large competitive processes we have also won:

 

·      A new contract to deploy the IFT set top box diagnostic technology for a cable TV operator in Western Europe, our first IFT contract outside the UK and North America;

·      A multi-year, multi-service contract for a global mobile operator covering Iberia, which is the first business for the Group with this client and has led to Regenersis being asked to open its first Portuguese depot facility;

·      A deal to support the same network operator in their sizeable German insurance programme;

·      A further new contract with a German insurer, supported through Poland.

 

Additionally the client balance shifted further towards multinational operators, as opposed to OEMs, which provides greater opportunities to sell Advanced Solution services as well as exposure to a better portfolio of manufacturers' business.


Digicomp secured its first new contract since acquisition, for tablet OEM services, demonstrating the competitive advantage enjoyed by Digicomp now it sits under the Group's umbrella.

 

Corporate Developments

 

·      Further network internationalisation occurred during the period; the Group has commenced operations in Portugal, and will add a facility in Memphis, USA during the second half of the year.

·      The remaining shares in Regenersis Russia were acquired for £0.56 million on 13 December 2013.   This will now become a wholly-owned subsidiary and benefit from all of the Group's sales resource and efforts to grow further into this potentially significant emerging market.

·      The Group continues to progress a number of exciting M&A opportunities in line with its stated strategy.

·      As announced in December, the Group's total banking facilities with HSBC were increased from £23 million to £39 million and the term of the facility was extended to October 2016.  

 

Matthew Peacock, Executive Chairman, said, "Our ambition and belief is that we can become the global leader in our business. I expect this next stage of growth to be as exciting and rewarding as the last, as we complete the roll-out of our depot network and the transition of the business to one which has a greater proportion of its earnings from the Advanced Solutions division."

 

"We believe these developments and the half year results underpin the market's expectation for a strong H2, as well as adding further confidence to the Board's expectations for continued good growth next financial year."

 

Enquiries:

Regenersis Plc
Matthew Peacock, Executive Chairman
Jog Dhody, Chief Financial Officer

+44 (0) 20 3657 7000

Panmure Gordon (UK) Limited (Nomad and Joint Broker)
Dominic Morley / Nicola Marrin, Corporate Finance
Charles Leigh Pemberton, Corporate Broking

+44 (0) 20 7886 2500

Cenkos Securities (Joint Broker)
Stephen Keys, Corporate Finance
Alex Aylen, Sales

+44 (0) 20 7397 8900

Tavistock Communications
Catriona Valentine / Matt Ridsdale / Keeley Clarke

+44 (0) 20 7920 3150

 

About Regenersis

 

With its core business in repairing consumer electronics, Regenersis helps companies like HTC, Nokia, Samsung, Orange, John Lewis, LG, Toshiba and others deliver the best possible after market service to its customers.  Through the provision of technical call centres or managing returns and repairs, the company supports a wide range of products including mobile phones, laptops and tablets, set top boxes, televisions and other electronic equipment.  Regenersis also operates in the business-to-business environment where it offers high quality and secure repair and refurbishment solutions for chip and pin devices, ATMs and even MRI scanners.

 

Building upon its success in repair, the company is already proving its pioneering range of services known as Advanced Solutions, which include in-field testing, where Regenersis is partnering with cable operators across the world to diagnose set-top box faults in the home, reducing unnecessary returns.  The newly formed Renew business unit comprises Digital Care, which provides extended warranty and insurance services to end customers; Refurbishment, which provides legitimate, quality refurbished components and devices to the end customer; and Recommerce, which offers client led refurbishment, repair and onward disposition of devices.

www.regenersis.com


This information is provided by RNS
The company news service from the London Stock Exchange
 
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