Regenersis improved its profits in the six months to December 2009 and is restructuring its business.
The electronic goods repairer and recycler is restructuring its business. Instead of technical services and environmental services the business will be split along product lines. The three divisions will be mobile communications, media and entertainment and information technology. Mobile accounts for two-thirds of revenues and the other two divisions account for around one-sixth each. The restructuring will be completed by June.
Underlying profits rose 18% to £2.3m on revenues 16% higher at £57m. There was a £300,000 contribution from TRS, which was acquired last summer.
Demand for repair and return services for smartphones and notebooks is increasing.
Net debt was £4.7m at the end of 2009. The debt should be wiped out by June 2011.
KBC Peel Hunt forecasts an improvement in underlying profits from £4.7m to £5.5m in the year to June 2010. The share issue to pay for TRS means that earnings per share will fall.
At 49p a share, down 5.5p on the day, which values Regenersis at £22m. The shares are trading on five times prospective earnings for 2009-10.
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