Redcentric delivers upbeat message after strong Q1

8th Aug 2014 08:21

IT group Redcentric said it delivered a strong first quarter with organic growth at the top end of management's expectations.The company, which provides IT infrastructure, network and security services to businesses, said it was "comfortable with full-year market expectations".First-quarter revenues and profitability were in line with forecasts, it said, which represent a "significant improvement in year-on-year performance".Order intake has been strong with the signing of a "significant number" of new contracts during the period from new and existing customers.Meanwhile, the integration of Technology Managed Services which was acquired last December continues to progress well, it said.Strong cash generation has continued and has helped to reduce debt levels."Following a strong performance last year, the trading pattern in the first quarter has continued," remarked chief executive Tony Weaver."We are pleased that so many new and existing customers are recognising the work our team has done in creating one of the UK's leading managed service providers, and are committing themselves to Redcentric in increasing numbers," he said.The stock was up 0.6% at 111.2p in early trading on Friday, giving it a market capitalisation of £157m.BC