Regenersis has inked a deal with O2 to take on a major mobile phone repairs contract and is in negotiations with the operator for a further three repair packages.
The deal sees Regenersis extend its services at its repairs hub in Normanton, West Yorkshire to include on-site repairs for the first time.
Speaking to Mobile, Regenersis sales director David Hesketh (pictured) said the deal would see staff numbers rise ‘significantly’ at Normanton, which currently has 150 employees on site delivering repair screening services for O2.
Hesketh added that the Normanton repairs hub currently carries out 60,000 to 80,000 screening activities every month. He added: ‘The hub we have in the UK at Normanton has the potential to carry around 100,000 repairs per month.’
The company’s repairs hub is centred in DHL’s logistics facility in Normanton. It was opened last year, as part of a partnership deal between the two companies that aims to combine Regenersis’ technical skills and OEM relationships with DHL’s supply chain infrastructure and logistics expertise.
Hesketh said the deal will see Regenersis expand its mobile repairs business in the UK and to other DHL hubs across the world.
He added: ‘We have a good relationship with DHL and it is a model we hope to replicate across Europe and the rest of the world. It follows the general trend among clients to look for solid partners or consortia to handle much bigger, multi-geographical repair contracts.
‘Our deal with DHL means we can combine large scale logistics and repair services, as well as carry out certain repairs where labour is much cheaper, making it an efficient repair process we can offer all over the world.’
Regenersis is also keen to grow the hub’s screening and repair work via other mobile operators. Hesketh said: ‘DHL will allow us to put non-O2 business into Normanton and we are certainly interested in using that capability. We are currently looking to other operators to do that.’
Hesketh insisted the firm remains fully committed to its UK base as it expands its footprint globally.
He said: ‘We absolutely intend to keep a strong base in the UK. We are making significant progress in our relations with O2 and DHL, in our work with Everything Everywhere, with all the major manufacturers, with our insurance clients and in our recycling activities. All of these have substantial potential to grow the UK base.’
Regenersis employs around 800 staff in total at its bases in Huntingdon, Glasgow and Normanton. Hesketh revealed that recent growth in the UK base had offset the loss of its contract with Three, which was retendered and awarded to Unipart in July this year.
Hesketh said the loss of the contract was ‘disappointing’, but added that it was based on a strategic decision by Three rather than on the quality of service.
The loss of the contract has seen staff numbers shrink from 600 to around 400 employees at its centre in Glasgow. However, Hesketh is confident the company can rebuild the division. ‘In the short-term we have the capacity to tailor, refigure and customise batches of handsets there and we have made it clear to our client base that we are able to take on that work. In the long-term we will take on replacement clients.’
Anovo bid: ‘We did not come away empty-handed’
Matthew Peacock, executive chairman of Regenersis, shrugged off the company’s failure to buy rival repair firm Anovo earlier this month.
Regenersis won a place on the final shortlist of two, but was pipped at the post by French equity investor Butler Capital Partners.
Peacock said: ‘We gained a lot of knowledge about their business and how Anovo make money and so, although we did not come away with the prize, we did not come away empty-handed.’
He added: ‘We made the acquisition by our French counterpart a very expensive one and one that will leave them with a lot of work to do.’
Regenersis appointed Peacock as executive chairman in February as part of a major boardroom reshuffle which also saw chairman Jeff Hewitt and non-executive directors David Holland and David Gilbert step down.
Peacock is the founder partner of Hanover Investors Management, a specialist London-based turnaround investment firm that is a major shareholder in Regenersis. Peacock has an indirect 14.16% stake in the company.
Peacock said the coup had left the company with a clear strategy. ‘In the past six months we have secured direction for the management team in terms of group strategy and in reorganising our financial reporting so that we can see more clearly where we make our money. Historically we reported by business segment. Now we report geographically.’
He added that the company was experiencing rapid growth in emerging markets. ‘The profits there are higher than in the mature markets we operate in, with faster growth and lower labour costs so they can be very price competitive, but our UK business will benefit from our multi-geographical solutions.’
He added: ‘The mobile world no longer operates around national barriers and clients are seeking much larger, complex solutions. They are looking for pan-European and multi-regional suppliers, so we are developing much more mix and match multi-geographical solutions for our clients.’
Peacock said Regenersis’ mobile business grew last year in excess of 11%.
‘We expect to do even better next year. We are making a very good rate of progress.’