15 Jul 2014 07:00
15 July 2014
REGENERSIS PLC
TRADING UPDATE AND NOTICE OF RESULTS
Regenersis plc ("Regenersis" or the "Group"), a strategic outsourcing partner to many of the world's largest technology brands, issues this trading update in advance of its results for the year ended 30 June 2014, which will be announced on 23 September 2014.
Trading
The Board is pleased to confirm that performance for the year will be in line with market expectations, in a period in which the Group has again delivered double-digit sales and profit growth and an improving operating margin. The Advanced Solutions Division has shown particularly good profit growth in the period. The Group's net cash position at the financial year end will also be in line with market expectations.
Blancco
Since its acquisition on 17 April 2014, Blancco has performed ahead of management's initial expectations and the business is expected to show continued significant growth in the next financial year to 30 June 2015.
In April 2014, Blancco agreed a partnership with Kroll Ontrack, previously its largest competitor, whereby Kroll Ontrack promotes Blancco's data erasure software solutions. This partnership has started well and is already delivering new business.
The changes to Article 17 of the European Union's Data Protection Regulation announced in March 2014 stipulate "the right to be forgotten" and have profound implications for data controllers. Blancco's offering addresses this need and discussions with Regenersis' customers to adopt Blancco's core product have begun globally.
Xcaliber Technologies
Xcaliber Technologies' mobile diagnostics and issue resolution software complements Blancco's corporate data erasure services as well as Regenersis' Repair, Recommerce and Digital Care services. The Group is working with existing customers to bring to market a bundled offering combining these mutually complementary solutions.
In the last six months, Xcaliber Technologies has contracted its first significant mobile diagnostics revenues and launched three important live pilots of its solutions with a major US mobile operator, a major European mobile operator and a major US repair company.
As a result of this encouraging pipeline, Regenersis has agreed to provide a further US$3.5m of funding, taking its equity stake in Xcaliber Technologies to 49%. This development capital will be used to secure the growth of the business and the large potential contracts that already exist, as well as to progress a bundled diagnostic platform with Blancco and other growing Regenersis technologies.
M&A
In addition to Xcaliber Technologies, the M&A pipeline contains several exciting prospects and we look forward to providing a progress report in our full-year results. The Group is focusing particularly on deals which will expand its technology suite and also those that will extend its global footprint. The Board remains confident in the Group's ability to source accretive investments and to integrate them successfully.
Matthew Peacock, Executive Chairman of Regenersis, said:
"In 2014, we have focused on building the Group's software and system-driven businesses both via corporate activity and through organic developments started in 2012 and 2013. The Group is now active in 22 countries. Advanced Solutions' contribution to Group operating profit is expected to grow to around 60% in 2015, from 31% in 2013, and to increase further in the coming years.
"It is these developments in Advanced Solutions which underpin the Board's expectation of further double digit growth in the next financial year and beyond."
Enquiries:
Regenersis Plc +44 (0) 20 3657 7000
Matthew Peacock, Executive Chairman
Jog Dhody, Chief Financial Officer
Panmure Gordon (UK) Limited (Nomad and Joint Broker) +44 (0) 20 7886 2500
Dominic Morley / Callum Stewart, Corporate Finance
Charles Leigh Pemberton, Corporate Broking
Cenkos Securities (Joint Broker) +44 (0) 20 7397 8900
Stephen Keys, Corporate Finance
Alex Aylen, Sales
Tavistock Communications +44 (0) 20 7920 3150
Catriona Valentine / Matt Ridsdale / Emma Blinkhorn
About Regenersis
The technology aftermarket sector, in which Regenersis operates, provides services that improve the consumer or user experience after the initial purchase of a device. This area is becoming the cornerstone in how our clients seek to differentiate their brands and increase customer loyalty. Regenersis provides a range of hardware services (such as repair and logistics), software services (such as diagnostics) and managed services (such as device insurance programmes), which address these needs. Regenersis' clients include many of the world's largest technology brands.
www.regenersis.com