Hanover forces a revolution at Regenersis

THE chairman and two other directors at Regenersis - Scotland's second largest electronics employer - were ousted yesterday as activist shareholder Hanover Investors made its first moves since building a stake in the company.

As revealed in Scotland on Sunday this week, Hanover - which has a track record of forcing change at companies it believes are undervalued - has recently acquired 14 per cent of the Aim-listed gadget repair group.

Chairman Jeff Hewitt and fellow non-executive directors David Holland and David Gilbert have stepped down with immediate effect.

Hanover founding partner Matthew Peacock has taken over as chairman with two new non-executives, Michael Peacock and Andrew Lee, appointed.

The new chairman told The Scotsman that he believed the company had "terrific opportunities but hasn't made the progress it might have done given the potential of a growing market".

Peacock also pointed out that Regenersis was less profitable than equivalent companies in Europe and had been poorly rated by the stock market.

Hanover typically looks to double or triple its initial investment in a company within three years by working with management to maximise potential.

Peacock said he hoped a "plan of action" for the firm would be in place within three or four months.

Oxford-based Regenersis bought Scottish tycoon Richard Emanuel's Inchinnan-based mobile phone repair business Total Repair Solutions (TRS) in 2009 in a 6.25 million deal. The company employs some 1,100 staff between its Inchinnan site and at Glenrothes, where it repairs laptops, set-top boxes, iPods and satellite navigation systems.

Shares in Regenersis closed up 3p at 71.5p yesterday, their highest level for more than 12 months, and valuing the company at 32m.