Operator will not renew repair deal with Regenersis as company looks for new work to avoid job losses at Scottish site
Recycling and repair company Regenersis has lost its repair contract with Three after months of negotiation failed to extend the deal which ends later this year.
Regenersis currently employs 600 staff at its Inchinnan site, west of Glasgow, where repair work is carried out on behalf of Three.
Both companies were unavailable for comment when contacted by Mobile News but it is understood that the decision by Three to pull the contract was not based on Regenersis’ performance and is instead part of the operator’s wider strategic plans.
Regenersis will now look to win new contracts in order to avoid implementing job losses at the Inchinnan site.
The loss of the Three account comes less than two months after Regenersis appointed Ian Powell as its new managing director.
Powell’s appointment was part of a shake up at senior level within the company, which saw its chief executive and director Gary Stokes depart in early March.
Following Stokes’s departure, non-executive chairman Matthew Peacock became executive chairman. Peacock is the founding partner of Regenersis shareholder Hanover Investors Management LLP. Tom Russell, a partner of the same shareholder, also joined the company as non-executive director.
The restructure came at a time when Regenersis announced its financial results for the second half of 2010, which saw increases across all areas.
Group revenue increased 5.8 per cent to 60.3 million, while group operating profit almost doubled to 2.9 million, representing an increase of 94 per cent. Profit before tax rose 168 per cent to 2.8 million with operating cash flow more than doubling to 0.7 million.
Regenersis executive chairman Matthew Peacock said at the time: “With new board leadership in place we are now undertaking an operational and strategic review, the outcome of which will be reported before the financial year end in June.”
