Redcentric plc, the Harrogate-based IT managed services provider (MSP), said the recent £127 million sale of its Data Centre (DC) business is a “transformational deal” allowing it to focus on its attractive MSP opportunity, reduce the leverage on its balance sheet, and return material proceeds to shareholders most likely via a Tender Offer.

“Following the planned material reduction in net debt and unburdened by the capital expenditure requirements of the DC business, the board expects the group to deliver higher cash conversion and improved free cash flow,” said Redcentric.

“Reflecting this the board will, at the end of the year, consider the possible reintroduction of a progressive dividend policy and / or a potential introduction of a share repurchase plan.”

For the six months ended September 30, 2025, Redcentric said revenue for the continuing operations of the group fell 3.6% to £66.8 million and reported profit before tax rose 18.7% to £1.9 million.

Redcentric CEO Michelle Senecal de Fonseca said: “I am delighted to deliver these positive results, in what has been a very busy first half for the Group. Whilst the transformational year has been challenging, it is pleasing to see that our focus on securing and maintaining higher margin business and managing costs has already delivered improved margins from the MSP business.

“With the sale of the DC business now announced, our ongoing focus is very much on MSP as we start to execute the new strategy and growth plan which we believe will accelerate growth in both revenue and earnings in the years to come, building on the strong foundations of a market leading position and a high recurring revenue model.”