(RGS) Regenersis

Regeneris plugged in with sales surge
By Perry Gourley
Published on Friday 13 January 2012
http://bit.ly/zdrvpx

RNS Number : 4921U
Regenersis PLC
22 December 2011





22 December 2011



Regenersis plc



("Regenersis" or the "Company")



Director/PDMR Shareholding





Regenersis plc (the 'Company'), a strategic outsourcing partner to many of the world's leading consumer technology companies, received notification on 21 December 2011 of the following director dealing in the ordinary shares of 2 pence each in the Company ("Shares").



On 16-19 December 2011, Dauphin Capital LP acquired 200,000 Shares. The purchase price of these shares was 68.5 pence per Share.



Matthew Peacock, Chairman of Regenersis, as a partner in Hanover Investors Management LLP, is connected to Dauphin Capital LP. The combined resultant holding of Hanover Investors Management LLP and its connected parties is 8,035,608 ordinary shares equating to 17.93 per cent. of the issued share capital of the Company.

From November's 'Company Refs', when price was 77.8p:-
a/ Prospective PE ratio of 6.06 (based on two broker forecasts, both recommending as a 'buy').
b/ Growth in eps of 19.2%.
c/ Price to sales ratio of 0.27.
d/ Net asset value per share of 68.7p.
e/ Turnover up from £60.4m to £124m in last six years.
f/ Two directors recently buying.
g/ Cash per share of 6.42p.


Looks very undervalued.

MIDAS: Phone repair firm Regenersis on the up after attracting turnaround fund
By JOANNE HART
Last updated at 12:26 PM on 23rd October 2011


In working order: Regenersis specialises in repairing products such as the iPhone
Midas takes a look at Regenersis, a company that repairs electronics and has attracted the interest of a specialist turnaround investment fund.
Not that long ago, most households in Britain had one landline phone and one television showing three channels.
Today, almost every family home boasts a gaggle of mobile phones, iPads and BlackBerrys as well as at least one set-top box delivering numerous cable or satellite channels to several TVs.
The developed world is swamped with electronic devices and the developing world is moving in the same direction.
This is all very well when everything works – but it is frustrating when they do not.
Which is where Regenersis comes into play. The company specialises in repairing electronic kit, ranging from phones to set-top boxes to chip-and-PIN devices and it has client list that includes Apple, LG, Sony Ericsson and Siemens.
The business looked great on paper when it was admitted to the alternative investment market in 2005 at 125p, but its performance in recent years was disappointing and the stock languished. Then, at the start of this year, what could politely be called a boardroom reshuffle took place.

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Hanover Investments, an investment fund specialising in turning businesses round, took a 14 per cent stake. A few weeks later the Regenersis chief executive resigned and Hanover founder Matthew Peacock became executive chairman. A strategic review ensued, overheads were cut and the company is now focused on three core areas – mobile phone repairs in emerging markets, sophisticated set-top box repairs in mature markets and the repair of niche products such as chip-and-PIN machines in Europe.

Strategy: Matthew Peacock has seen turnover go up six per cent and expects an increase of at least ten per cent in the next two to three years
The strategy has been well thought-out and Peacock expects to increase turnover by at least ten per cent in the next two to three years, as well as improve profit margins.
When mobile phones became popular, the makers did all the repairs in house. They then realised it made more sense to outsource the work, which prompted a proliferation of repair firms.
Over time, competition has risen and margins have fallen, at least in the developed world. In emerging markets, however, the mobile industry is still growing fast and repair work is an expanding and profitable sector.
Regenersis has already built a presence in a number of countries in eastern Europe. Since Peacock took the chair, it has gained a foothold in South Africa and Turkey, too, and further expansion is planned.
The set-top box division is intriguing as the company has devised a way to fix many more boxes in consumers’ homes rather than having to send them away.
This is appealing to television watchers but also to those companies, such as Virgin Media, that rent boxes to customers rather than sell them outright.
These firms save considerable sums because only those boxes that are seriously broken need to be sent away for repair. The business is in its infancy but there are plans to roll it out across Britain before venturing overseas and possibly to America.
The third element of the business should enhance profits, too. Chip-and- PIN machines are sensitive and security is paramount.
Each device is specially coded for individual retailers so any repair work needs to be carried out by trusted companies. The price paid for this work is less important to chip-and-PIN machine owners than the quality and Regenersis has established a name for itself in this area.
Last month, Peacock announced a six per cent increase in turnover to £124 million for the year to June 30 and an 11 per cent r