Regenersis - Turning Around Technology

Regenersis Hits £105m Mark

£5.8m Profit Enables Company to Invest in Facilities and New Markets

Regenersis plc (LSE: “RGS”), a leading provider of product lifecycle management services to the consumer and commercial technology markets, announced preliminary results for the twelve months ended 30 June 2008 with revenues up 9% to £105m and headline operating profit substantially increased to £5.8m. Cash generation from operations further improved to £13.4m, eliminating debt to end the year with a net cash balance of £0.7m. The company also significantly strengthened its balance sheet; increasing reserves and improving its asset base by 30%.

The Company also posted £15m of new business and £20m of renewed business during the year ending 30th June 2008.

Gary Stokes, CEO of Regenersis said, “With the business financially stable, we are looking at ways to capitalise on the new opportunities we are seeing within the growing technical and environmental market. There is a shortage of good quality capacity across Europe; Central and Eastern Europe are particularly buoyant, and we are investing in these markets. We are also seeing a number of our clients increasing emphasis on improved service as a route to gaining market share; promoting brand loyalty and retention. This bodes well for organisations such as us that are able to invest and provide consistent high quality service across multiple locations.”

Non-Executive Chairman of Regenersis, Jeff Hewitt, commented: “We have successfully completed the restructuring programme outlined a year ago and the emphasis of our financially sound Group has now shifted to investing in facilities and opportunities whilst, at the same time, remaining mindful of tightening of consumer markets. Consequently, we expect Group sales in the first half of the current financial year to be similar to those achieved in the second half of financial year 2008. However, we expect the benefits of our investment in new facilities coupled with organic growth in our other businesses to lead to good growth in the second half of financial year 2009 and beyond.”