Redcentric PLC Trading Update (3517Q)
October 27 2021 - 2:00AM
UK Regulatory
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)
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END
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