Harrogate-based IT firm Redcentric plc said in a trading update it expects its half-year revenue to increase, after five acquisitions were completed between September 2021 and July 2022.
The cloud and data connectivity provider said it expects revenue to increase 39% to £61.5 million for the six months that ended September 30.
However, it expects its first-half adjusted earnings before interest, tax, depreciation and amortisation to fall to £11.7 million from £11.9 million a year prior.
Shares in Redcentric fell about 4%.
Redcentric noted that exceptional costs of £4.8 million were £2.5 million higher than anticipated due, in part, to restructuring costs relating to its acquisitions of 4D Data Centres Ltd and Sungard Availability Services UK Ltd.
Redcentric bought 4D for £10.1 million and Sungard for £10.0 million in July.
Redcentric’s adjusted net debt subsequently multiplied to £39.3 million from £1.5 million six months ago.
It also reported an increase in new sales orders during the second quarter of its financial year 2023, noting order levels to be ahead of pre-Covid-19 levels.
Redcentric said it had strengthened its cyber security, hyper-cloud and consulting capabilities following the acquisitions, diversifying its product offerings.
The company signed a new £100 million banking facility on April 27, allowing it access to £80 million of committed funds with competitive interest rates to support its acquisition strategy.
Reporter: Greg Rosenvinge
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