INVESTORS who had faith in the turnaround plans announced at gadget repair firm Regenersis – one of Scotland’s largest electronics employers – just over three years ago have been rewarded handsomely.
Shares last week hit a record high of 377p, representing a gain of more than 500 per cent since activist investor Hanover took a significant stake in the firm.
At the time Hanover partner Matthew Peacock spoke of the potential he saw in the firm which repairs gadgets such as satnavs and mobile phones for companies including HTC, John Lewis and Samsung. Hanover instigated a boardroom coup and installed a fresh team of directors at the company and since then it has enjoyed a turnaround it its fortunes.
In an update last week, the company said it had secured a number of business wins including a deal with a global mobile network operator in Germany, where it will manage device trade-in programmes. Other customers which it has secured agreements with include several insurance clients in northern Europe and a major operator in South Africa. Together the contracts are expected to have an annualised revenue of at least £10 million once they reach their full speed.
While the shares have continued to rise, Equity Development analyst Paul Hill believes they could have further to run. He has upped his targets for 2015 sales and operating profits to £248.5m (up by £12.5m) and £13.6m (up by £1m) respectively and raised his target price to 430p from 400p.
• Shares in Escher rose at the end of last week after the software company announced a contract win with food retailer Just Falafel to provide payment and loyalty schemes across its retail outlets in the UK under its “mobile wallet” product. The service will launch this month in the Fulham store followed by a rollout in all Just Falafel stores throughout the UK.
Analyst Joshua Goldman at Davy, who has an outperform rating on the shares, pointed out the deal adds to the more than 60 high street retailers in Ireland that already use Escher’s mobile wallet solution.
Shares gained more than 8 per cent on Friday and with full year results on Tuesday, investors will be hoping for news of further progress.
Monday: Goals Soccer Centres (F)
Tuesday: Esure (F); Craneware (I)
Wednesday: French Connection (F)
Thursday: Nichols (F)
Friday: Tribal (F)