Regenersis Rises to Eight-Year High on Dividend: London MoverPeter Woodifield
Regenersis Plc, a repair services company that aids consumer technology firms such as smartphone provider HTC Corp., rose to the highest price in eight years after boosting its dividend more than estimated by analysts.
Regenersis, a fixer of mobile phones, tablets and cable television boxes, acquired an Indian company this month and won a slew of contracts across Europe and emerging markets this year, it said in a statement today. The London-based company will pay a 1.83-pence final dividend, for an annual total of 2.50 pence, exceeding the estimates of all three analysts who share their predictions with Bloomberg.
The stock rose 4.5 percent, the most on five months, to 253.5 pence, the highest since at least April 2005, and the fourth-biggest gain among 134 companies on the FTSE AIM Industrial Goods Index.
The final dividend was “well ahead of our estimate and exceeds our forecast for 2014 too,” Paul Jones, an analyst at Panmure Gordon & Co., said in a note. “Regenersis is being seen increasingly as the ‘go to’ solutions house for the industry.”
Regenersis bought Digicomp Complete Solutions Ltd. for 4.4 million pounds ($7 million) on Sept. 10, extending its aftermarket services to India, it said today. The company also has moved into Spain, Mexico, Argentina, Sweden and the U.S. in the last 12 months.
“The opportunity exists to continue to grow annually at double-digit rates of growth for the foreseeable future,” Chairman Matthew Peacock said in the statement.
Regenersis became the Europe-wide mobile repair provider for a “major” equipment manufacturer in the second half of the fiscal year and counts Nokia Oyj, Samsung Electronics Co. and Toshiba Corp. among its clients. It is building business in areas such as testing for cable operators to diagnose set-top box faults in the home.
Revenue in the year ended June 30 rose 28 percent to 179.7 million pounds. Underlying operating profit more than tripled to 7.1 million pounds.
Panmure’s Jones, who has a buy rating on the stock, raised his 12-month price target 26 percent to 302 pence. He left his 2014 earnings estimate unchanged.
Trading volume was more than four times the three-month daily average. Regenersis has gained 179 percent in 12 months and is valued at 126 million pounds.