Regenersis - Turning Around Technology

Regenersis plc
(“Regenersis” or “the Group”)
Preliminary results for the twelve months ended 30 June 2009

Regenersis plc (LSE: “RGS”), a leading provider of product lifecycle management services to the consumer and commercial technology markets, is pleased to announce preliminary results for the twelve months ended 30 June 2009.

Operational Highlights

• Investment programme in Eastern Europe now complete
  o   Lower-cost operations approaching 40% of Group repair activity
  o   Volumes in eastern Germany, Poland and Romania up 55%
• Acquisition of Total Repair Solutions (“TRS”) completed on 1 September 2009; significantly
  strengthening our Technical Services offering
  o   Highly complementary to Regenersis’ service business strategy
  o   Acquired at an enterprise value of £6.25 million; no additional debt
  o   Blue-chip customer relationships and sector-leading efficiencies and practices

Financial Highlights

• Group revenue of £98.3 million (FY08: £105.0 million)
  o   Changing business mix; Technical Services exceeds 70% of Group revenue
  o   Environmental Services suffers increased competition; handling fewer, more valuable handsets
• Headline operating profit* of £5.2 million (FY08: £5.8 million)
  o   Margins remain stable following continued focus on tight cost control
  o   Improved second half reflecting contribution from investment in Eastern Europe
• Net debt increased to £4.3 million (FY08: net cash £0.7 million)
  o   Working capital increases reflect significant changes in business mix
  o   Cash outflows reduced as investment programme completes
• Banking facilities successfully renegotiated as part of the TRS transaction
  o   £12.5 million of facilities available to the Group; agreement in place to March 2013
  o   Additional £3.5 million headroom to fund integration and growth
  o   Group remains comfortably within its banking covenants
  *Headline operating profit excludes exceptional restructuring costs, amortisation and share-based payments

Commenting on the results, Regenersis’ Non-Executive Chairman, Jeff Hewitt commented:
“The progress the Group has made in the last year; building additional capacity in Eastern Europe, lowering the cost base, strengthening of the finances and the recent acquisition of TRS collectively establishes Regenersis’ competitive position and ensures that it is well placed in its key target markets. The integration of TRS will provide opportunities to improve performance and attract new business. The Board believes that Regenersis has better prospects and will profit further from industry consolidation with a well financed and sustainable business model.”

To view the complete Preliminary Results, click here.