||EPS - Basic
||Market Cap (m)
|Software & Computer Services
Redcentric Share Discussion Threads
Showing 826 to 848 of 850 messages
|A close at 89p or higher and it's back above the 50 and 20 day moving average.|
|Seller looks to be finished for now - L2 looks strong now for a push back upwards.|
|Bought in yesterday having been watching since Simon Thompson's article in the Investors Chronicle back in January when he recommended buying MXCP.
To me the chart looks good for an upturn.
NAI DYOR etc.|
|I've been adding here recently. This is what SCSW said in Jan when they included RCN in their 2017 Naps:
• I am not convinced Redcentric (RCN; 91.5p) is a dead duck following some recent accounting misstatements. A forensic review has found over-accrual of revenues, under-accrual of costs, and inappropriate capitalisation of costs. Thorny stuff. But behind its problems is a first class business with high recurring revenue. Redcentric’s H1 revenue was £53m with EBITDA of £9.1m, which will be attractive to a predator. The largest chunk of sales is from connectivity, including LANs and WANs provisioned for blue chip customers, enabling them to connect all their various offices together. It also hosts their data on secure servers and provides 24x7x365 support.
CEO bought at 92p, nice NHS contract win since. dyor|
|It's clear there was an exaggeration in revenue driven by stretching the accounting rules covering accruals - been there, bought the t shirt.In my experience, such overstatements are relatively common in industries where contract durations extend beyond a year, and more so in the IT sector - overt optimism as opposed to good old prudence, usually at the board's behest.Whether the previous incumbent was made the scape goat or not is irrelevant IF the overstatements are the only accounting misstatements - then, when combined with the recent contract win, RCN look well positioned to grow, prudently.I'm holding on for the foreseeable but will be forensically reviewing their accounts, and sharing my results with this forum...|
|I bought shares in a company years ago. I forget the name now, RED something and they ended up in the hands of this company. There was a large action taken then and nothing was done or could be done because of the practices that happened then in the amount of share restructuring going on and probably other stuff.
The shares were gradually whittled away using whatever tactics could be had at the time. I only luckily had £1000 worth at the time but over a short space of time it was turned into worthless shares that I now only own 3 that would cost me more to sell than they're worth.
Seems the same sort of disease is still abundant in this company and the same tactics used to destroy share holders value just to keep the company going.
I'm reading all the same info now that happened back then. If you got them, try and dump them before you lose any value in your shares too.|
UK IT managed service provider Redcentric continues to win new business, with early signs suggesting customer confidence has not been dented by the accounting scandal which hit the company in November last year.
It became one of multiple approved network service providers (NSPs) to be included in the Peering Exchange contract for the new Health and Social Care Network (HSCN) as NHS Digital shifts to a “disaggregated” supply model rather than relying on a single network provider.
The value of the initial three year contract (with the option of a three year extension) was not disclosed. But the idea is that NHS Digital saves money by promoting more price competition amongst NSPs as they jostle to interlink individual HSCN customers.
It is an important win for Redcentric which also signed a connectivity deal to implement a wide area network (WAN) linking 1,000 employees across five sites for bed manufacturer Silentnight in December. Redcentric had been growing at a good rate in the six months to the end of September 2016, adding 38 new customers in the period. It was feared market jitters which saw the company’s shares dip by as much as 72% could halt that momentum.
Redcentric’s readjusted H1 revenue was broadly flat at £53m following the overstatement of net assets and post-tax profits worth around £21m, with a statutory pre-tax profit of £300k. Recurring revenue growth of 6% (up 2% organically) was driven largely by additional turnover from the City Lifeline acquisition whilst net debt rose by £1.5m to £34.5m.
With a new CFO, Peter Brotherton, in place and a strong H2 sales pipeline (£93m) the company will be hoping to draw a line under the incident. We wait to see if 2017, already shaping up to be a difficult year for many SITS suppliers, can see Redcentric sustain previous growth rates.|
|The people on the INSIDE are buying.
Thats all you need to know.
Follow the money|
|Looks like they've just won a big contract to supply the core of the new NHS network - HSCN peering exchange. Surprised no RNS yet but expect rally when news gets out.|
|I don't think anyone's sweeping anything under the carpet , that's why Nabarro have been taken on. I can't see the point of wasting their time with stating the bleeding obvious.|
|I have no intention of "knocking" RCN: I think the right actions have been taken so far and the future looks decent but, as a shareholder, I want to make sure that the company recoups as much as it can and that guilty parties don't get away with it. For our future protection it is vital that misdeeds or negligence aren't just swept under the carpet.|
|The last thing we need is uncertainty. The fall guy has left the building and perhaps MXC should look at their disposals and purchases but we need to look forward, steady the ship and have a period of sustained confidence building in both the company and share price The truth will out but let's not knock RCN anymore at the moment.|
|My letter to Chris Cole includes the following:
"...The recently published interim results shed some light on the findings to date. However, they still leave a number of unanswered questions. These questions include:
• Understanding better how timing differences could have led to such a significant misstatement of net debt.
• Establishing where within the organisation the incorrect entries occurred.
• Why standard audit procedures did not detect discrepancies between book entries for receipts and bank statements..."|
|marben 100 - good luck with your actions.
fwiw to me the most disturbing bit of the November bombshell was "The Board also believes that the underlying net debt position at 31 March 2016 was materially higher than as reported". Those a/cs were signed off by PricewaterhouseCoopers who were paid £126k to do so on behalf of the shareholders. Now you might be able to hide a fistful of invoices from the auditor to reduce the 'payables' but I would have thought that net debt was one of the most verifiable figures by checking bank statements. They have some explaining to do. It also adds to the argument that auditors should be changed every so often.|
|I am leading a campaign at ShareSoc to investigate events at Redcentric and, if possible, seek action. Aggrieved shareholders can sign up here: hTTp://www.sharesoc.org/redcentric.html
Yesterday, I sent a letter to chairman Chris Cole, requesting a meeting. I do not intend to just let this lie and let any guilty parties get away with rooking investors.
I remain a shareholder in Redcentric myself and have not bought or sold since the November 7th announcement. I did add to my position in the weeks leading up to the announcement, as the shares appeared good value to me then.
|Stock broker FinnCap has restored forecasts on SME communications and IT services supplier Redcentric (RCN:AIM) after the company's accounting kerfuffle in November 2016. After crunching the numbers analyst Andrew Darley has slapped a 117p target price on the stock, roughly 26% up from the current 93p level|
|Forecasts restored re Finn cap
'Having withdrawn original forecasts with the initial revelations, we reintroduce amended forecasts, assuming that the forensic accounting investigation has uncovered the issues, and having been corrected, that second half 2017 performance (to 31 March) continues to replicate performance in the first half (to 30 September 2016), as management guidance indicates,' the analyst continues.
FinnCap's latest forecasts
Redcentric reported interim results just before Christmas, on 23 December. These showed 5.9% recurring revenue growth - 1.9% organic - to £44.7m. That means 84% of otherwise broadly flat revenue of £53m, with 38 new clients and key wins in the half.
That last point about new customers is important because there had been worries that new customers would be reluctant to commit to doing business with the company given its problems. Concerns that Redcentric's struggles could even spark a mass exodus of existing clients equally appear wide of the mark.
The share price stubbornly refused to budge on the day, staying largely flat at 84p, although some progress has since been made.|
Tony Weaver stepped down from the Board as Non-Executive Director on 1 November 2016. Tim Coleman resigned from the Board as CFO on 7 November 2016.
No thanks to the directors booted out
The Group's restated net debt position as at these dates was not representative of the underlying position as creditors had been significantly stretched at these dates. The average month end net debt position over the eight month period to 30 November 2016 was £42.0 million and better reflects the Group's underlying net debt position over the period. Management are focused on improving the Group's billing and debtor collections processes and it is expected that as this materialises net debt will reduce.
|Great RNS onwards and upwards|
|well my bottles crashed, ive made another 6%,in 2 weeks, which is in addition to my 38% i made before. Today i thought 4% up, everybody buying, so i will sell.
Lets see if ggbarabajagal is correct tommorrow. Im off to Seville for Xmas so not able to monitor so easily.
|Bit late for de-ramping isn't it ?
In full recovery mode now, good luck to all longs ;)|
|I have a feeling the losses and revaluation of assets are going to be nastier than they have let on
news before the end of year, probably tomorrow just when the market closing early cos they will want to hide it
and next week it will open sharply down and you will be crying over your turkey
The cumulative overstatement of net assets and profits after tax up to 30 September 2016 is approximately GBP20.8 million.
The board need to walk|