TIDMRCN

RNS Number : 3517Q

Redcentric PLC

27 October 2021

Redcentric plc

("Redcentric" or the "Company")

Trading Update

Redcentric plc (AIM: RCN), a leading UK IT managed services provider, today announces a pre-close trading update for the six months ended 30 September 2021.

Financial Highlights

We are pleased to announce that trading for the six months ended 30 September 2021 is expected to be in line with the Board's expectations, with revenues of GBP46.4m (H1 FY21: GBP46.2m) and adjusted EBITDA of GBP12.0m (H1 FY21: GBP12.3m). The Company had minimal net debt of GBP0.4m at 30 September 2021 (31 March 2021: net cash of GBP1.0m), excluding supplier loans and leases previously classified as operating leases under IAS17. This strong position reflects a final dividend payment of GBP3.7m, the disposal of the non-core EDF contract for GBP5.8m and the acquisition of Piksel Industry Solutions Ltd ("Piksel IS") for GBP9.5m.

Operational Highlights

The integration of Piksel IS is progressing well, and we are on target to have the business fully integrated by the end of the current financial year. Good progress has been made in realising synergies and we are confident of achieving cost savings of at least GBP1.1m. The acquisition has been well received by both companies' customer bases and we are already in active discussions regarding several cross-sell opportunities.

Outlook

We expect trading for the year ending 31 March 2022 to be in line with the Board's expectations, including strong cash generation consistent with previous guidance. This is despite a continued lack of largescale IT projects and supply chain issues remaining a feature of the sector. In addition, several of our electricity supply contracts fell due for renewal during the ongoing UK energy crisis and this will add GBP0.5m of costs to H2 FY22 and at least GBP0.5m of costs to H1 FY23.

We continue to make progress on M&A prospecting, with several active conversations underway, a growing pipeline of potential targets and a strong balance sheet.

Notice of Interim results

The Company intends to announce its results for the six months ended 30 September 2021 on Thursday 18 November 2021.

Enquiries:

Redcentric plc +44 (0)800 983 2522

Peter Brotherton, Chief Executive Officer

David Senior, Chief Financial Officer

finnCap Ltd - Nomad and Broker +44 (0)20 7220 0500

Marc Milmo / Simon Hicks / Charlie Beeson (Corporate Finance)

Andrew Burdis / Sunila de Silva (ECM)

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

TSTPPGMCUUPGGRQ

(END) Dow Jones Newswires

October 27, 2021 02:00 ET (06:00 GMT)

Redcentric (AQSE:RCN.GB)
Historical Stock Chart
From Jun 2024 to Jul 2024 Click Here for more Redcentric Charts.
Redcentric (AQSE:RCN.GB)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more Redcentric Charts.