Regenersis PLC (LON:RGS) is one of this morning’s biggest movers, down 18% after issuing a trading update ahead of its end of year results.
The company report that, after a competitive tender process, one of its larger clients will be moving to another supplier; which is likely the reason behind the fall in share price. The company anticipate that this is likely to adversely impact on the performance of one arm of the group, Depot Solutions, over the next financial year.
However, Depot Solutions achieved in reported Sterling and in constant currency, growth in revenue and headline operating profit in the year just ended. Given that, the Board believes the outlook for FY2016 is modest growth in headline operating profit, with strong growth in the Advanced Solutions and Software activities offset by a reduced contribution from Depot activities.
Regenersis provides a suite of product life cycle support services designed to help companies and their customers successfully deploy, protect, sustain, retire and re-use digital technology. The Depot Solutions Division operates client oriented electronic repair and refurbishment facilities around the world.