14 Jul 2015 07:00
14 July 2015
REGENERSIS PLC
("Regenersis", the "Company" or the "Group")
TRADING UPDATE AND NOTICE OF RESULTS
Regenersis, the global provider of electronic repair, diagnostics and data erasure software, issues this trading update in advance of its results for the year ended 30 June 2015, which will be announced on 22 September 2015. Notwithstanding Sterling's continued strength through the reporting period, the Group's profitability in the financial year to 30 June 2015 will be in line with market consensus.
Depot Solutions achieved in reported Sterling and in constant currency, growth in revenue and headline operating profit in the year just ended. However, post the year end, Depot Solutions has been notified, following a competitive tender process in which the Group participated fully, that one of its larger clients intends to consolidate its European business with another supplier which is anticipated to adversely impact Depot performance in FY2016. This reflects an ongoing consolidation trend in the sector, of which Depot Solutions has been a beneficiary in recent years.
Blancco (currently reported within Advanced Solutions) achieved year on year sales growth of 27% in its first full year as part of the Group, driving headline operating profit growth in constant currency terms of approximately 45%. The Group will report Blancco separately from the rest of Advanced Solutions at final results and going forwards, reflecting its increasing importance to the Group.
Given the above, the Board believes the outlook for FY2016 is for modest growth in headline operating profit, with strong growth in the Advanced Solutions and Software activities offset by a reduced contribution from Depot activities. During 2016, the Board will focus on actions to maximize shareholder value.
Enquiries:
Regenersis Plc +44 (0) 20 3657 7000
Matthew Peacock, Executive Chairman
Jog Dhody, Chief Financial Officer
Peel Hunt LLP (Nomad and Joint Broker) +44 (0) 20 7418 8900
Richard Kauffer
Edward Fox
Panmure Gordon (UK) Limited (Joint Broker) +44 (0) 20 7886 2500
Charles Leigh Pemberton
Tulchan Communications +44 (0) 20 7353 4200
Tom Buchanan
Victoria Huxster
Regenersis provides a suite of product life cycle support services designed to help companies and their customers successfully deploy, protect, sustain, retire and re-use digital technology.
Our Depot Solutions Division operates client oriented electronic repair and refurbishment facilities around the world, being one of the leading operators in this field.
Our Software and Advanced Solutions Division comprises innovative businesses with attractive growth and margin potential, which benefit from Regenersis's global presence and client relationships in Depot Solutions. This currently includes Blancco, a software business which is the global market leader in securely erasing data from devices; Regenersis's Set Top Box diagnostics business, which provides automated functionality testing; Digital Care, which provides smartphone accidental damage insurance programmes in partnership with insurance underwriters; and Xcaliber Technologies, a software business in the area of smartphone issue diagnosis and resolution.
www.regenersis.com