Redcentric expects H1 revenue up 39% to £61m

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

Copyright 2022 Alliance News Limited. All Rights Reserved.