17th Mar 2014 11:33
LONDON (Alliance News) - Regenersis PLC raised its interim dividend and gave a bullish outlook for the full year, as it saw pretax profit decline despite rises in revenue in its recent half.
Regenersis provides outsourcing for consumer technology companies.
The company proposed an interim dividend of 1.32 pence, up from 0.67 pence in the previous year.
Regenersis posted pretax profit of GBP1.6 million in the half year ended December 31, 2013, down from GBP3.2 million in the previous year, despite revenue rising to GBP99.7 million from GBP90.2 million, as capital expenditure and research and development costs rose, and it posted acquisition costs of GBP1.2 million.
The company said it had been hit by currency headwinds including the weakening South African rand. On a constant currency basis the company would have posted revenue of GBP105.2 million.
Revenues in Emerging Markets rose to GBP39.4 million from GBP25.0 million, although revenues in Western Europe declined to GBP44.5 million from GBP51.0 million, primarily due to transferring a particular original equipment manufacturer contract to Poland, which it now reports in the Emerging Markets segment.
Regenersis said it is currently trading in line with expectations for the full year, and it expects profit and growth in the second half to primarily come from its Emerging Markets and Advanced Solutions segments. The company was bullish in its outlook, expecting a strong second half and expressing confidence for continued growth in the next financial year.
"My expectation is that over the next 12-18 months we will emerge as an Advanced Solutions-led business, seen as the trusted partner to our multi-national, blue chip clients, increasingly integrated into their strategic initiatives," said Executive Chairman Matthew Peacock in a statement.
Shares in Regenersis were trading up 1.4% at353.00 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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