New management at electronic diagnostics specialist, Regenersis, has been busy reshaping the business. Adjust for a £0.6m charge relating to the failed acquisition of French competitor, Anovo, and operating profit rose 18.3 per cent year-on-year to £3.8m. Yet the shares are undemandingly rated - leaving further upside looking likely.
Following that failed deal, Regenersis acquired half of Anovo's Nordic business - which handles 70 per cent of Sweden's mobile phone repairs. That should bolster its western European operations, which saw sales rise 35 per cent to £40.4m in the period. However, emerging market sales slipped 2.6 per cent to £21.3m reflecting a reduced order, although tight cost controls left profits here flat at £2.7m. New operations in Turkey and South Africa should also lift the unit. Deferred business reduced sales in the advanced solutions business, however, which tests gadgets like set-top-boxes on site. Sales there fell 3.5 per cent to £8.2m although, with the kit now being piloted by a major US cable TV operator, prospects here look good.
Chief executive Matthew Peacock expects double-digit revenue growth in 2012 and broker Arden Partners forecasts full-year adjusted pre-tax profit of £7m, giving EPS of 12.1p (2011:£5.6m/10.7p).
REGENERSIS (RGS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 83p | MARKET VALUE: | £37.2m | |
| TOUCH: | 82-84p | 12-MONTH HIGH: | 85p | LOW:64p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 71p | NET DEBT: | 13% | |
| Half-year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 60.3 | 2.82 | 5.18 | nil |
| 2011 | 69.9 | 2.73 | 5.08 | nil |
| % change | +16 | -3 | -2 | - |
*Includes intangible assets of £28.8m, or 64p per share | ||||
