Repairing mobile phones and set-top boxes is proving lucrative for Regenersis (RGS) - underlying operating profit jumped 22 per cent year-on-year to £9.5m. Moreover, in a highly fragmented market, the company has spent the past year snapping up smaller players and partnering with others, which has bolstered its competitive position.
In fact, it's this takeover activity which partly explains the decent revenue hike, although chief executive Matthew Peacock says there was also quite a bit of organic growth - with a "decent split" between the two. Moreover, the group managed a number of significant contract wins, including those with Telefonica Insurance and a major Polish mobile operator, while new business also came from South Africa, Sweden and Romania.
Revenue at the depot solutions division grew a quarter to £151.5m, helped by a new multi-country contract with a major manufacturer. Meanwhile, the higher-margin advanced solutions unit saw sales rise 50 per cent to £28.2m as money streamed in from Virgin Media - its engineers use Regenersis' portable set-top box diagnostic kits. Mr Peacock is confident the group can achieve double-digit revenue and earnings growth for the next three years.
Broker Panmure Gordon expects pre-tax profit of £10.6m for 2014, giving EPS of 18.4p (from 16.8p in 2013).
| REGENERSIS (RGS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 257p | MARKET VALUE: | £128m | |
| TOUCH: | 255p-258p | 12-MONTH HIGH: | 257p | LOW: 90p |
| DIVIDEND YIELD: | 1.0% | PE RATIO: | 24 | |
| NET ASSET VALUE: | 79p* | NET DEBT: | 5% | |
| Year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 98.0 | 3.40 | 9.47 | nil |
| 2010 | 116 | 3.56 | 6.89 | nil |
| 2011 | 124 | 0.26 | -1.85 | nil |
| 2012 | 140 | 1.68 | 3.33 | 1.10 |
| 2013 | 180 | 5.67 | 10.5 | 2.50 |
| % change | +29 | +238 | +215 | +127 |
Ex-div: 6 Nov Payment: 4 Dec *Includes intangible assets of £45m, or 91p a share | ||||
