22nd Sep 2015 07:54
LONDON (Alliance News) - Regenersis PLC on Tuesday said it has agreed to acquire US data erasure software provider Tabernus for up to USD12 million, as it reported a rise in pretax profit for its recently ended financial year.
Regenersis provides outsourcing for consumer technology companies.
It will buy Tabernus LLC and Tabernus Europe Ltd for an initial USD10 million cash payment from its revolving debt facility, plus a maximum of USD2 million deferred cash, payable after two years. Regenersis expects the acquisition to add to earnings.
For the half year to end-June, Regenersis reported a pretax profit of GBP6.8 million, up from GBP2.9 million a year before, as revenue rose to GBP202.6 million from GBP197.5 million. During the period it reported a GBP1.5 million loss on the disposal of subsidiaries, although in the previous period it had reported higher acquisition costs and exceptional restructuring costs.
Regenersis proposed a final dividend of 3.35 pence, taking its total dividend for the year to 5.0 pence, up from 4.0 pence a year before.
The company reiterated that its focus now is on taking actions to maximise shareholder value, and it is exploring options including the potential sale of its aftermarket services business, which would reposition it as a software business. As a result, it has appointed two new heads for each of its two main business segments.
It has appointed Ian Powell to its board as an executive director, and chief executive officer of its aftermarket services segment. Powell has previously acted as the company's managing director. It has appointed Patrick Clawson as an executive director and chief executive officer of its digital security software segment.
Regenersis said trading in its current financial year, along with its outlook for the remainder of the year, is in line with expectations.
Shares in Regenersis were up 2.1% at 146.00 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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