Harrogate-based IT firm Redcentric Plc said on Wednesday it continues to make progress on mergers and acquisitions prospecting “with several active conversations underway, a growing pipeline of potential targets and a strong balance sheet.”
The news came in a trading update for the six months ended September 30, 2021.
“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 £46.4m (H1 FY21: £46.2m) and adjusted EBITDA of £12.0m (H1 FY21: £12.3m),” said Redcentric.
In its outlook, Redcentric said: “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 £0.5m of costs to H2 FY22 and at least £0.5m 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.”