News blog
Regenersis
- BY: Andrew Hore |
- POSTED: 05/08/2009 |
Regenersis is buying Total Repair Solutions Ltd for £6.25m in cash and shares.
The electronic goods repairer and recycler is raising £3.3m at 40p a share in order to cover the cash payment of £3m for TRS, which will repay the target’s borrowings.
Renfrewshire-based TRS is involved in the same areas as Regnersis. It provides outsourced services, such as repair and recycling, to the mobile phones sector. According to the TRS website (www.totalrepair.co.uk) key customers include Motorola, Nokia, Sanyo, Sony Ericsson and Vodafone. TRS has also developed repair management software. Management will be retained.
TRS reported a pre-tax profit of £539,000 on revenues of £22.5m in the year to March 2009. EBITDA before deduction of management fees was £1.4m.
Richard Emanuel is the owner of TRS and he will receive shares equivalent to 18.1% of the enlarged share capital of Regenersis. Emanuel sold his DX Communications retail business to BT Cellnet (O2) for £42m in 1999 and owns the Netherlands’ biggest retailer of mobile phones.
Regnersis should achieve cost reductions from consolidating UK operations and adopting the TRS IT system.
At 47p a share, Regenersis is valued at £13.3m. The company has not been a beneficiary of the recent upturn on Aim. The shares have fallen by one-quarter over the past six months.
Profits will be in line with expectations in the year to June 2009. Net debt is estimated at £4.3m at the end of June 2009.
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