Repairs and outsourcing specialist Regenersis has signed a deal with HSBC’s Corporate Banking today for £20m of funding to help drive its acquisition and growth plans.
Under the new agreement, Regenersis said it would have a particular focus on emerging markets to fuel the growth.
The news comes as the group posted its interim results to December 2011. The results revealed an increase in group revenue from 15.9% to £69.9m. Headline operating profit also increased 18.3% to £3.8m from £3.2m in 2010.
Regenersis has expanded its international operations and now trades in the UK, Germany, Poland, Romania, South Africa, Turkey, Sweden and Russia. Its international strategy is to target emerging markets experiencing rising demand for mobiles, smartphones, set-top boxes and other technology equipment.
In the Western Europe division, revenue increased by 34.7% to £40.4m with headline operating profit increased 72.5% to £1.3m generating a margin, before central costs, of 3.3%, up from 2.6% for the same period in 2010.
In its financial statement the group said the results ‘are a testament to the change in management and profit focus in the UK as well as the growing strength of our businesses in Germany’.
It added its strategy in Western Europe is to grow the b2b business globally, and return its UK mobile phone business to profitable growth ‘after several years of poor results’. The b2b business is focused on repair and maintenance support of devices including cash machines, payment terminals, other handheld business terminals and medical IT devices, primarily in Germany.
Regenersis said its Glasgow depot remains under review, ‘given its low utilisation’. Two hundred jobs were lost at the depot after a major repairs contract with Three was retendered and awarded to Unipart in July 2011.
However, the company said the review would not threaten jobs. A spokeswoman said: ‘We are reorganising the depot to make better use of the space and looking at potentially leasing off part of the building. But no jobs are at risk. It is business as usual at the Glasgow depot.’
The company’s results delivered better news for its partnership with DHL in Normanton for mobile phone repairs, which the company said had grown and become profitable, compared to a loss of £0.1m in the same period last year. The partnership to deliver a rapid mobile phone repair and return service from DHL’s centre in West Yorkshire was signed in September 2010. The four-year, multimillion-pound deal saw a new 'centre of excellence' set up for return and repair services at DHL’s centre in Normanton, West Yorkshire.
Regenersis' clients include Orange, Virgin Media, CPP, Nokia, LG and Samsung.