Regenersis sparks interest from potential buyers

Gadget repairer Regenersis, a significant employer in Scotland, yesterday said it had received interest from a number of potential purchasers for part of its business following a strategic review.

Regenersis executive chairman Matthew Peacock

In a trading update the company, which operates bases in Glasgow and Glenrothes, said it had received “several indicative offers” for the after-market services division which includes the Scottish operations.

“Although there can be no assurances, this process remains on plan and has moved on to its next stage within the expected time frame,” it added.

In September the group had said it was exploring “various strategic alternatives” that include the potential sale of the after-market services

business.

It said a sale would “reposition the group as a pure-play software business” and enable a significant distribution of cash to shareholders.

Regenersis repairs products including mobile phones, laptops and tablets, set-top boxes and televisions and has contracts with major telecoms companies and retailers.

In recent years it has also developed a digital security and software business and owns the Blancco Technology Group, the global market leader in data erasure software.

In yesterday’s trading update the firm also said group performance in the first half of the current financial year was strong compared to the previous year and in line with expectations.

It said the software business significantly increased sales in line with expectation for the full year, whilst also maintaining operating profit margins. It added that the aftermarket services businesses performed in line with expectations.

Regenersis acquired its Scottish sites when it bought Total Repair Solutions from Scottish entrepreneur Richard Emanuel in a £6.2 million deal in 2009.

In 2011, activist shareholder Hanover Investments began a major shake-up of the business after acquiring a stake in the Aim-listed company with the then chairman and other directors leaving the business.

Latest annual figures for the group showed revenue of £202.6m, up 2.6 per cent, although at constant exchange rates the growth was 13.6 per cent. Headline operating profit rose by 40 per cent to £15.4m.

When the potential sale of the after-market business was announced, chairman Matthew Peacock said the move was part of actions to maximise shareholder value.

Separate chief executives were appointed for the after-market services and digital security businesses.

“As chairman this will allow me to focus on the delivery of value from this strategic initiative, after which I will complete the transition to being fully non-executive,” added Peacock.