8th Mar 2016 10:24
LONDON (Alliance News) - Regenersis PLC said Tuesday reported a narrowed pretax loss for its first half, and said it remains in talks over the possible sale of its Digital Care business, as it continues to focus on its software erasure business Blancco.
Regenersis provides diagnostics, repaire and data erasure services for the consumer electronics industry.
Last month, the company agreed to sell its Repair Services Business for EUR103.5 million as part of its efforts to narrow its focus.
For the half year to end-December, Regenersis reported a pretax loss of GBP302,000, narrowed from a pretax loss of GBP2.2 million a year before, as revenue rose to GBP9.9 million from GBP6.8 million.
Revenue growth was driven by a strong performance from Blancco, as the business saw particularly strong growth in its Live Environment Erasure group of products, as well as growth in mobile products. Regenersis bought software erasure provider Tabernus LLC and Tabernus Europe Ltd in September, and this helped boost Blancco in the US.
Tabernus has now been fully integrated, Regenersis said.
The company proposed an interim distribution of 0.66 pence, down from 1.65p the year before, as it has rebased its dividend following the sale of its Repair Service business. Regenersis said it expects to distribute up to GBP50 million through a tender offer following the completion of this sale, and it intends to adopt a progressive dividend thereafter.
"Blancco has again demonstrated its ability to grow sales at a rapid pace while maintaining strong profit margins and cash flow, testament to the efforts of the Blancco team, and the value of holding a unique competitive position in an exciting growth sector. In the coming weeks, I look forward to completing the group's transformation into a very exciting software opportunity, unique in the UK publicly quoted market," said Executive Chairman Matthew Peacock in a statement.
Shares in Regenersis were up 0.2% at 197.30 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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