These half-year figures mark the rebirth of Regenersis (RGS) as a 'pureplay' software business, although the substantive financial implications of the transition won't become fully apparent until later this year. In February, the group confirmed that it was hiving off its repair services business in order to focus on Blancco, its key data erasure business, which has identified "a $2bn (£1.4bn) market opportunity".
Comparative metrics from a year ago aren't particularly illuminating due to the change in business mix and the group's adoption of IFRS accounting for subscription sales. Revenues and reported operating profits fell in the wake of the accounting change, while headline operating cash flows were lower due to the removal of discontinued cash flows during the period. However, the group's cash conversion rate went into orbit due to a surge in the amount of cash collected in advance of revenue recognition. Perhaps a more meaningful indicator of how the group is performing is provided by invoiced sales figures from Blancco, which show a 40 per cent growth rate at constant currencies.