Regenersis reaped the benefits of its restructuring in the year to June 2008.
Revenues increased 9% to £105m, while a loss of £10.7m was turned into a profit of £3.9m. The company has moved from a net debt position to net cash of £740,000. Stock levels and debtors were both lower at the end of the year.
The business can offer a full range of services throughout the life of an electronic product from repair through to its disposal. These products include mobile phones, computer equipment and multi-media devices.
Regenersis has secured £20m of renewed business but some margins have come under pressure. It has also added £15m of new business.
New business is being won in all markets but eastern Europe is the strongest region. The Warsaw factory has been expanded and another facility will be opened in 2009. Regenersis would like to further increase capacity in Poland. The company believes that there is more demand than it has the capacity to supply in Poland. The new facility in Romania is already winning new business.
Regenersis will be able to pay a dividend for this current financial year. It will make a decision when it reports its figures next year.
Management reckons that Regenersis is in a much stronger position than its rivals. Regenersis could be a consolidator in the market.
Turnover in the first half of 2008-09 will be similar to the second half of 2007-08. It should then start to grow.
The Regenersis share price rose 0.5p to 80p, which values the company at £22.7m.
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