Harrogate’s Redcentric reports strong trading

Shares of Harrogate-based IT firm Redcentric Plc rose 5% on Tuesday after it said its revenue fell 6% to £87.5 million for the year ended March 31, 2020, but that trading in the first quarter of the current financial year “has been strong and slightly ahead of the board’s full year expectations.”

Full-year dividend per share is up 31% to 1.83p despite a reported loss before tax of £10.6 million which included a one-off provision of £11.4 million to cover a restitution scheme as part of a settlement reached with the FCA.

Last month, Redcentric announced it reached a settlement with the FCA “in relation to certain historical accounting misstatements.”

Also in June, Redcentric announced a share placing and subscription to raise £5.775 million.

Redcentric CEO Peter Brotherton said: “We have had a very productive year with many of the initiatives undertaken giving rise to long term benefits.

“After three years of decline, recurring revenues are now growing and account for 89% of total revenues.

“The efficiency and integration initiatives undertaken during the year have resulted in annualised savings of £3.5m, which will boost future profitability.

“Our network and operational platforms have all been upgraded, resulting in modern, resilient and scalable infrastructure to support future growth.

“The settlement with the FCA means that the company’s management team is now free to focus solely on the business and able to sell to all markets, including those regulated by the FCA.”