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Redcentric outlines 'excellent' FY trading amid revenue growth
6th Apr 2021 08:13
(Sharecast News) - IT managed services provider Redcentric said on Tuesday that full-year trading had been "excellent", with revenues growing, healthy profitability and exceptional cash flows.
Redcentric stated its "strong" recurring revenues, "resilient" business model and "diverse" customer base had enabled it to not only weather the Covid-19 storm but also "flourish" in "difficult times".
Revenue and adjusted underlying earnings for the year ended 31 March were expected to be in line with the board's expectations, with net debt of approximately £15.6m being better than the board's expectations.
The AIM-listed group said despite customers continuing to defer decisions on large scale IT projects, it had continued the "strong progression" reported at the halfway point of the year and also pointed to continued growth in revenues since.
Redcentric added that good cash flow and its strong working capital performance helped the firm reduce net debt by approximately £19.0m after dividend payments of £1.9m and exceptional items of £2.9m, with the company also repaying its revolving credit facility in full during the period.
Chief executive Peter Brotherton said: "We have had a very busy and successful year with all strategic objectives being achieved. The business has reacted well to the many challenges presented by the Covid-19 pandemic and has proven to be terrifically resilient.
"We have returned to growth, operational efficiency programmes have been delivered, the ERP system has been successfully implemented and profits are healthy."
As of 1010 BST, Redcentric shares were up 1.89% at 134.50p.
Redcentric stated its "strong" recurring revenues, "resilient" business model and "diverse" customer base had enabled it to not only weather the Covid-19 storm but also "flourish" in "difficult times".
Revenue and adjusted underlying earnings for the year ended 31 March were expected to be in line with the board's expectations, with net debt of approximately £15.6m being better than the board's expectations.
The AIM-listed group said despite customers continuing to defer decisions on large scale IT projects, it had continued the "strong progression" reported at the halfway point of the year and also pointed to continued growth in revenues since.
Redcentric added that good cash flow and its strong working capital performance helped the firm reduce net debt by approximately £19.0m after dividend payments of £1.9m and exceptional items of £2.9m, with the company also repaying its revolving credit facility in full during the period.
Chief executive Peter Brotherton said: "We have had a very busy and successful year with all strategic objectives being achieved. The business has reacted well to the many challenges presented by the Covid-19 pandemic and has proven to be terrifically resilient.
"We have returned to growth, operational efficiency programmes have been delivered, the ERP system has been successfully implemented and profits are healthy."
As of 1010 BST, Redcentric shares were up 1.89% at 134.50p.