LONDON (Alliance News) - Regenersis PLC on Tuesday said it expects its full-year results to be in line with market forecasts, but said it has been notified that its Depot Solutions business is set to lose a significant slice of business, sending its shares lower in early trade.
The company, which provides electronic repair, diagnostics and data erasure software, said that, excluding the effect of sterling's strength against other currencies, its profit for the year to the end of June will be in line with market expectations.
But while its Depot Solutions arm posted revenue and profit growth in the recently-ended financial year, it has recently been informed by a larger client of its intention to consolidate its European business with another supplier, which will hit the division's performance in the current financial year.
Elsewhere, the group said its Blancco unit has seen 27% sales growth in its first full year as part of the company, with its headline operating profit rising by 45% in constant currencies. Blancco, currently part of the Advanced Solutions business, will be reported separately in future.
The group said its outlook for the current financial year is for modest heading operating profit growth, with the Depot business to offset good trading in its Advanced Solutions and Software divisions.
Still, the news sent Regenersis shares tumbling 16% in early trade to 168.2 pence, the worst performer in the AIM All-Share.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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