News
Interim Results to 31 December 2009
Regenersis plc
(“Regenersis” or “the Group”)
Interim results for the six months ended 31 December 2009
Regenersis plc (LSE: “RGS”), a leading provider of after-sales product support services to many of the world’s premier technology brands, is pleased to announce interim results for the six months ended 31 December 2009.
Operational Highlights
- Strength in Technical Services and increase in demand despite difficult economic conditions:
- Repair and return volumes up 9%, with 19% growth in mobile phone volumes and 36% growth in notebook volumes
- Positive contribution from newly integrated and re-branded TRS business
- Continued client acquisition: new wins secured include O2, Siemens, Samsung and Acer
- Lower cost operational platform enhancing our ability to execute:
- Central and Eastern European facilities servicing demand well
- Continued demand erosion in corporate Environmental Services market:
- End-of-life and recycling market remains challenging
- Cost base resized and new service models in development
- Re-alignment of business segments to more closely follow end-market demand:
- “Mobile Communications,” “Media and Entertainment” and “Information Technology”
Financial Highlights
- Group revenue increased 16% to £57.0m (£49.2m)
- Business mix continues to evolve; Technical Services now 80% of Group revenue
- £7.8m contribution from TRS in its first four months as part of the Group
- Headline operating profit(*) increased 24% to £2.7m (£2.2m)
- Includes £0.3 million contribution from TRS
- Labour costs continue to reduce, falling 6% on a like-for-like basis
- Return to operating cash generation, with net cash from operations of £0.3m (net cash out flow £3.2m)
- Benefit of improved working capital controls in Technical Services being recognised
- Reduced recycling volumes continue unwind of negative working capital in Environmental Services
- Gearing reduced to 16% on net debt of £4.7 million (30 June 2009: 20% gearing on net debt of £4.3 million)
- Committed banking facilities of £12.5 million remain in place, renegotiated to 2013
- Full covenant compliance
- Balance sheet strengthened; net assets increased by 36% to £29.2 million
(*) Headline operating profit excludes exceptional restructuring costs, amortisation and share-based payments
Commenting on the results, Regenersis’ Non-Executive Chairman, Jeff Hewitt commented:
“We are pleased with our Group’s performance in the first half and with the way in which our leaner, more flexible business platform has been able to capitalise on the increased demand we are seeing for Technical Services. We are particularly pleased with the smooth integration of TRS and the positive contribution that this business is already making to our operational and financial performance. The re-organisation of our business into three distinct, market-focused segments further enhances our strong strategic position and the Board remains confident that the Group is well placed to deliver sustainable growth as its key markets consolidate.”
