Redeem Holdings Full year results for the year ended 31 March 2015

Redeem, the leading mobile phone recommerce and recycling company in Europe, announces its full year results for the year ended 31 March 2015. 
Redeem is at the forefront of the rapidly expanding mobile phone recommerce and recycling industry
Redeem Group revenue has quadrupled in four years from £20m to £80m
 Successful international expansion with offices now open in Central Europe and Dubai
New hires strengthen the management team and provide platform for further growth

Financial Highlights

  • Revenue has quadrupled in four years
  • Revenue growth of 49% to £80.0m (FY14: £53.8m)
  • Profitability maintained, with EBITDA from operations increasing by 30% to £3.8m (FY14: £2.9m), and EBITDA after group costs more than doubling to £2.4m (FY14: £1.1m)
  • £15.5m funding package secured from two institutional investors, Connection Capital LLP and Praesidian Partners Europe
  • Repaying existing indebtedness
  • Improving capital base
  • Fund continued expansion and future acquisitions
  • £3.5m cash balance at year-end

Operational highlights

  • Focus on cementing relationships with Mobile Network Operators to provide basis for expansion into new territories
  • Extension of existing relationship with Telefónica UK to support O2 Recycle – the largest scheme of its type in Europe
  • Agreed with Tech Data to service all of its corporate partners in the UK, Sweden, Norway, Finland and Denmark
  • Relationship with Vodafone Spain extended to service its 1,000 stores in Spain
  • Further investment in people, offices and internal structures:
  • New operations established in Vienna and Dubai
  • Continued focus on investing in good people to support the growth of the business
  • Consolidation of UK MNO and consumer processing operations into one site in Macclesfield
  • Steady progress with Envirofone and emc
  • Launch of Envirofone shop for preowned mobile phone handsets (in June 2015)
  • emc taking on larger corporate accounts across Europe, including KPN, SFR and PSA Peugeot
  •  UK has seen particularly strong revenue growth (106%), together with Europe (82%), while Rest of the World is down 9%. The background to these changes includes growth in the UK driven by Redeem’s partnership with O2, a good performance in the Nordics, and a change in our focus with regard to our activities in Hong Kong.
  • Expansion of sourcing base: phones and devices now coming in from 24 countries
  • Outbound sales channels broadened: now reaching 26 countries
  • We now employ 285 people across a variety of nationalities in our 8 facilities in 6 countries

Trevor Bayley, Chairman of Redeem, commented:

“These results demonstrate the great progress which Redeem has made over the last four years. The business is now scaling well across a number of countries. 

“Central to our growth has the expansion of our MNO and retailers relationships. We have extended our relationships with Telefónica UK and Vodafone Spain. Our market-leading Nordics business continues to provide marketing and recommerce services to a varied client base across the region which includes TeliaSonera, Tele2, Telenor, Elisa, Netcom and Omnitel. The acquisitions we have made in the past year have integrated well and helped establish strong footholds.

“Our omni-channel strategy whereby we aim to cover all three major sourcing channels in each region is beginning to bear fruit with our C2B and B2B offerings (Envirofone and emc) supporting the MNO business.

“We are actively considering a number of acquisitions which will broaden our base of MNO relationships and extend our reach into new territories.  With the solidity of the business and its market leading position, we feel we are well positioned to lead the expected growth and market consolidation.”