Redcentric plc, the Harrogate-based IT managed services provider (MSP), published results for the year ended March 31, 2026, saying revenue fell 2.3% to £132 million and profit before tax rose 10.5% to £4.8 million.
“Completed the sale of Redcentric Data Centres Limited (RDC) on 30 April 2026 for total consideration of £124.9m,” said the firm.
“Tender Offer completed with £90m cash being returned to shareholders …
“Share buy-back programme of up to £1.5m approved on 11 August 2026. At 25 September 2026, 1,140,937 Ordinary Shares have been purchased through this programme …”
On dividends, Redcentric said: “The ordinary dividend was suspended in FY25 pending completion of the RDC disposal.
“Following completion of that transaction and the associated capital return, the Board’s has reviewed the Group’s capital allocation framework.
“Future decisions will balance shareholder returns with investment in core the business and the maintenance of appropriate net cash/debt position under the Group’s new facilities.
“The Board intends to reinstate a progressive dividend policy. Subject to trading performance of the Group’s financial position at the time, the first interim dividend is expected to be declared with the announcement of the Interim results for the six months ending 30 September 2026.”
Redcentric CEO Michelle Senecal de Fonseca said: “Following the disposal of RDC, Redcentric is fully focused on growing its MSP business. We have refined our go-to-market strategy and established a new business team to help realise our market opportunity.
“The factors weighing on reported revenue and historical ARR are easing. Underlying ARR increased marginally in FY26, and we expect this to build through FY27 to deliver stable reported revenue for the year against FY26.
“While complex solutions typically involve long lead times and sales cycles, our lead-generation efforts are beginning to build our pipeline of opportunities, and market dynamics are expected to support near-term demand.
“Our cost base is now right-sized to current revenue, and margins should improve in FY27 as the full-year impact of in-year savings comes through. Better use of our ERP system, continued solution-stack rationalisation and AI should drive further margin improvement, with adjusted EBITDA expected to be in line with current market expectations.
“Our financial position is strong, supported by our new banking facilities. As revenue stabilises, growth becomes sustainable, profitability improves and free cash flow becomes more predictable, the Board remains committed to further shareholder returns.
“Current FY27 trading in the continuing MSP business is in line with plan, with the balance sheet strengthened and the Group focused solely on growth and tangible investor returns.
“Despite a challenging MSP sector, we are confident in our product suite, our market position and our people, ensuring the foundations for growth and shareholder value creation are in place.”