Regenersis, a strategic outsourcing partner to many of the world’s leading consumer technology companies, is pleased to provide an update on progress. It is anticipated that the outcome of the ongoing operational and strategic review, which commenced in March, will be shared with investors before the end of this financial year in June. Today, the Group is able to announce several specific actions and changes.
Our recent activity as a Group has been designed to ensure that our efforts focus on markets where we are able to differentiate our services, create competitive barriers and deliver sustainable growth in revenues and margins. We are moving rapidly to implement a new organisation structure which supports this intent, including a global sales force and new reporting and incentive structures, and we have made several key senior appointments in recent months.
Ian Powell has joined the Group as Group Managing Director reporting to the Executive Chairman. Ian has a long and successful track record in driving significant operational and profit improvement in complex, multi-geography businesses. Most recently he delivered a step change in profitability as CEO of Chapelthorpe Plc, a fibres manufacturing business with factories in the UK, Austria, Russia and the USA. Prior to that he ran the UK operations of 4imprint plc.
Sergio Tansini, previously Managing Director of our Mobile division has taken on a new role as Group Sales Director. Winning and expanding large, multi-geography accounts is critical to boosting growth across the Group and Sergio will spearhead this activity, reporting directly to the Executive Chairman.
Andrew Lee has been appointed as Managing Director of the UK Mobile businesses. His previous roles include Managing Director of Dataforce Group (marketing and logistics), Group Operations Director of N Brown Group plc (catalogue retailer), and Managing Director of Demand Chain Logistics at the Unipart Group. Andy is currently a non-executive Director of the Group and will step down from this role in order to pick up these executive responsibilities. He will be replaced in due course by a new independent non-executive Director.
Head Office Relocation
The Board has reduced the size of the Group central team and relocated the Group functions to our existing facility in Huntingdon. Jeremy Wilson the Chief Financial Officer continues in his role, reporting to the Executive Chairman. Central Costs in the next financial year are expected to be around £0.9 million lower than the £2.7 million in the last reported financial year.
After a protracted period of negotiation stretching back to 2010 the Group has not been successful in renewing its contract with Hutchison 3G UK. The Board anticipates that this effect will not impact expectations for the current financial year and, furthermore, we believe that any impact in the next financial year to June 2012 will be more than outweighed by factors including the contribution of new business recently won or at an advanced stage of negotiation.
The Board is pleased to report that it has secured a £15m banking facility with HSBC until October 2015, replacing the Group’s previous banking arrangements and providing a good platform for growth.
Matthew Peacock, Executive Chairman of Regenersis commented:
“I am encouraged by the early strategic progress we have made since March. We have brought new skills in to the senior team, increasingly focused our efforts on differentiating our services and undertaken further work to fine-tune the Regenersis offer. This work continues and I look forward to presenting a fuller account of our strategic plans in June.”
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