Coms enjoys significant trading improvement at Redstone

15th Feb 2016 10:05

(ShareCast News) - Full year earnings at Coms Plc have beaten management targets thanks to strong sales and profit performance from IT services provider Redstone.Coms said that having been fully focused on Redstone's IT offering after offloading its lossmaking telecoms business last May, earnings from continuing operations before interest tax, depreciation and amortisation but after central costs would be in positive territory and will be ahead of management expectations for the 12 months to end-January.Both revenue and operating profit at Redstone were said to be "significantly" improved on the prior year, while good cash generation had led to a net cash balance of roughly £1.0m at the period end.Chief executive Mark Braund, the former Interquest man who was appointed alongside with a new finance director in June, said the operating business of the group was now in good health following a difficult year."Since the disposal of the heavily loss-making Telecoms business in May 2015, we have successfully strengthened the balance sheet and reduced overheads."We have also continued to develop our core Redstone business, through the investment of further capability in Smart Building technology, including in-building wireless, cellular and work space management solutions, all of which is beginning to bear fruit."He added that his plans to grow organically could also be mixed with strategic acquisitions.Shares in Coms were up 37% to a still-lowly 1.65p by 1030 GMT on Monday, still short of their 12-month high of 2.5p.