Regenersis: Regenersis PLC boosts revenues as it focuses on data software

Regenersis PLC (LON:RGS) said strong growth in its software business Blancco helped drive a 46% increase in revenues in the latest half year as firms become more aware of IT security issues. Last month, the AIM firm agreed the sale of its repair services business as it aims to focus purely on Blancco - the data erasure (data clearing) software business, which helps firms achieve IT security and compliance. It is also in talks to sell its Digital Care business separately. Blancco has identified a US$2bn opportunity in end-of-life device erasure in the enterprise and public sectors and has been strengthening its position by relocating headquarters to heartland USA an buying market leader, Tabernus. It was also awarded industry-first patents for SSD (solid state drive) erasure, and launched an integrated mobile erasure-and-diagnostics solution, it said. The group also saw very rapid growth in sales of its unique Live Environment Erasure (LEE) products. The firm narrowed its loss before tax in the six months to December 31 to £302,000 from a loss of £2.23mln the year before, while revenue came in at £9.9mln from £6.8mln in the same period last year. Headline operating profit was £3.5mln before corporate costs against £1.9mln for the first half of 2015 - an increase of 84%. Group debt at the end of the year was £8.9mln, compared to net cash of £7.8 million at theend of 2015, reflecting the acquisition of Tabernus, and costs relating to selling its repair services business. The proposed interim divi is 0.66p compared to 1.65p a share in the first half of 2015. City firm Panmure repeated a 'buy' and 320p target price. "Interim results provide clear evidence that data erasure is a fast growing and profitable segment of the software market," it said. Shares eased 1.52% to 194p.