23rd Sep 2014 08:23
LONDON (Alliance News) - Regenersis PLC shares dropped in early trading Tuesday after full-year profit for the group halved despite an increase in revenue, as it took hits from acquisition and restructuring costs as well as the strength of sterling.
Shares in the company were down 19.5% to 261.72 pence per share Tuesday morning, making it one of the worst performers on the AIM All-Share.
The support services company said pretax profit in the year to June 30 was GBP2.9 million, down from GBP5.7 million a year earlier. Revenue for the group was up in the period to GBP197.5 million, against GBP179.7 million, but the rise was offset by a jump in acquisition and one-off restructuring costs in the period, which totalled GBP9.4 million against GBP1.9 million a year earlier.
Despite rising, revenue for the company was held back by the strength of sterling over the year, with the company saying the 10% rise would have seen an 18% increase in constant currency terms.
The group final dividend per share is 2.68 pence, up from 1.83 pence the year before, making the total dividend 4 pence per share.
In the year, the group acquired data erasure software company Blancco for EUR60 million. It said the business has performed ahead of expectations since it was acquired and is expected to show significant continued growth in the coming year. The acquisition is forming a main part of the Advanced Solutions business at the company and Regenersis expects the contribution of this division to its results to increase in coming years.
Revenue from its Advanced Solutions business rose to GBP46.3 million in the year, up from GBP28.2 million. The group's Depot Solutions arm remains its biggest revenue contributor, with revenue from the arm slightly lower over the year to GBP151.2 million against GBP151.5 million a year earlier.
The company said current trading in local currency terms is in line with expectations and it is targeting double digit profit and revenue growth for the coming year. But it said the impact of the strength of sterling on its results has continued into the next financial year.
By Sam Unsted; [email protected]; @SamUAtAlliance
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