RCN Redcentric Plc

TIDMRCN

RNS Number : 2218E

Redcentric PLC

05 May 2017

05 May 2017

Redcentric plc

("Redcentric" or the "Company")

Trading Update

Redcentric plc (AIM: RCN), a leading UK IT managed services provider, is today issuing a trading update for the year ended 31 March 2017.

The Company's trading results for the year were in line with the Board's expectations. Redcentric experienced good sales momentum in the year with a number of key contract wins and renewals in both the public and private sectors.

Net debt as at 31 March 2017 was GBP39.5m, an improvement over the previously reported average net debt position to 30 November 2016 of GBP42.0m. This improvement was despite the significant exceptional items related to the forensic review.

Our lending banks have remained supportive over recent months and the Company is pleased to announce that amended debt facilities are now in place. Waivers in relation to historic covenant breaches have been secured such that the Company is fully compliant with its facilities.

Good progress has been made with regard to the remedial programme outlined at the interim results in December. The finance team has been further strengthened and a number of improvements made to internal systems and controls.

Further details on the above will be included within the Company's full year results for the year ended 31 March 2017 to be announced on 29 June 2017.

Fraser Fisher, Chief Executive Officer, said;

"We are pleased to be able to report that trading is in line with expectations. Throughout the challenges at the end of last year, we have continued to enjoy the support of our stakeholders including customers, banks and loyal colleagues. A great deal of work has been carried out in the past few months to execute the remedial plan, strengthening our reporting and control systems."

Enquiries:

 
 Redcentric plc                       Via Tulchan Communications 
 Fraser Fisher, Chief Executive 
 Peter Brotherton, Chief Financial 
  Officer 
 
 Numis Securities - NOMAD & Joint 
  Broker                                    +44 (0) 20 7260 1000 
 Simon Willis / Oliver Hardy / Ben 
  Stoop 
 
 finnCap Ltd - Joint Broker                 +44 (0) 20 7220 0500 
 Stuart Andrews / Rhys Williams 
 
 Tulchan Communications                     +44 (0) 207 353 4200 
 James Macey White / Matt Low 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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