“Positioned for further growth under new CEO”
Redeem, the leading mobile phone recommerce services company in Europe, announces its full year results for the year ended 31 March 2016.
- Redeem has transformed itself from a UK-focused recycling company into Europe’s largest mobile phone recommerce services business
- Appointment of new CEO Paul Adams to help drive growth and diversification
- Exciting initiatives planned around the Envirofone shop and the launch of a residual value proposition
- Strategic move away from lower margin and more volatile segments of the market towards mobile network operators and retailers
- Significant new contracts won, including Three in the UK, Vodafone in Spain and Tele2 in Sweden
- Now operating in 32 countries in three continents, with regional offices in the UK, Spain, Sweden, Estonia, Austria, Hong Kong and Dubai
- Handling over 1.8m devices per year and paying out in excess of £62m to customers every year
- £80.2m of revenues reported for the past year with 69% of those sales coming from outside the UK, demonstrating the company’s global reach
- EBITDA increased to £2.3m from £2.2m in the prior year, an increase of 5%
- Gross profit increased by £1.3m to £17.3m and gross margin percentage was up from 20.1% to 21.7%
- Revenues in the Middle East have grown to £1.6m having signed partnerships with three significant electronics retailers in the UAE
- The Nordic business is going from strength to strength and Redeem now works with all major MNOs and a number of retailers across the entire region
- In July 2016, Redeem hit the 2 million mark in terms of phones processed for O2 as part of their trade-in scheme
- Redeem Holdings has also recently completed a major refinancing exercise with Clydesdale Bank
Paul Adams, CEO of Redeem, commented:
“We are pleased to have signed a number of important new contracts with the likes of Three in the UK, Vodafone in Spain and Samsung in Poland which help to demonstrate our appetite for international expansion.
“In addition to expanding geographically, we are increasing our range of services to include, amongst others, device diagnostics and value-add refurbishment activities, in response to Mobile Network Operators and Retailers who are looking for a broader range of services from their suppliers.
Two new areas of particular importance to the business over the next twelve months will be our online Envirofone shop, where customers can acquire the latest handsets and the launch of our residual value proposition which will provide customers with a guaranteed value for their mobile device over the lifecycle of the product – helping them to move onto new products more frequently as new models are released.”