Redcentric Share Discussion Threads

[napoleon 14th] 28/6/2013 11:25

I like that TU.
I hold.

[marben100] 28/6/2013 08:41

j1mst3r,

All we know concerning the disposition of the placing proceeds is the resulting level of debt in Redcentric. See #20 above and confirmed as the net debt position (£11.2m) in today's announcement.

Cheers,

Mark

[j1mst3r] 27/6/2013 12:38

Hi marben100,

I couldn't find any mention of the distribution of the earlier RED £6m placing in the admissions doc.

Did I miss it somewhere?

[james8] 27/6/2013 09:15

RNS of £6m of contract wins

[pomp circumstance] 23/6/2013 11:22

With all the costs of running Redcentric in my opinion being dumped on Redstone this should be one way train!

[geraldus] 23/6/2013 08:16

Thankyou marben100.

[marben100] 22/6/2013 22:05

Haven't seen any notes, but I see from s.t.o.c.k.o.p.e.d.i.a. - that 8.2p EPS is forecast for Y/E 31st May 2014 by finnCap. [though my understanding is that the Y/E is 31st March]

[geraldus] 22/6/2013 19:23

marben100 - Have you managed to get any earnings forecasts? - G.Spotts.

[bill216] 30/5/2013 09:22

That's interesting. Thanks for that. Bill

[marben100] 28/5/2013 11:53

A belated thanks for that, Bill!

I have finally had a chance to plough through Redcentric's admission document. Found two notable things:

P18:
"It is expected that Redcentric will generate sufficient profits and free cash flow to consider a dividend for the financial year to 31 March 2014 and it is the Board's intention to put in place a progressive dividend policy thereafter."



P50:

"On 22 March 2013 the MMS Group was acquired by Redcentric Holdings Limited, a wholly owned subsidiary of Redstone plc for a deferred cash consideration of £11.4 million (subject to adjustment).

On 22 March 2013 the MMS Group acquired the Network Managed Services business of Redstone Converged Solutions Limited for a deferred cash consideration of £1.3 million (subject to adjustment).

On 8 April 2013 Redcentric Holdings Limited was demerged from Redstone plc by way of a dividend in specie to Redcentric plc.

Following the demerger of Redcentric Holdings Limited from Redstone plc, Redcentric plc secured a new Senior Revolving Credit Facility with Barclays Bank plc. The total facility of £14.2 million is subject to semi annual reductions culminating in a bullet repayment of £8.0 million on 1 July 2015. Interest is levied at LIBOR plus 2.75 per cent. On 8 April 2013, Redcentric Holdings Limited drew £11.2 million of the new Senior Revolving Credit Facility to satisfy the consideration obligations arising from the disposal of the business, including the MMS Group, by Redstone plc to Redcentric Holdings Limited."


That level of debt in Redcentric is inline with my expectations.


I have spoken to finnCap today, to enquire about results publication (the AD only contains figures for Maxima Managed Services through to 31st May 2012 (which we've already seen), and interim figures for the demerged ex-Redstone business to 31st October 2012. Apparently there is some debate about whether to release results to 31st March 2013, because they would not be particularly meaningful - as the company was only incorporated on 11th February 2013 and the demerger formally took place after 31st March.

I was advised, however, that the Redcentric business would be shown as "discontinued operations" in Redstone's final results - and hence trading results could be inferred from those. Note, however, that Redstone's takeover of Maxima only took place in November 2012, so even the discontinued operations are likely to be partial results. From the AD, the ex-Maxima business contributes more than 50% of Redcentric's revenues (assuming revenues haven't shrunk further).

The first "clean" Redcentric results will be the interim results to 30th September 2013 - which I guess we won't see until around the end of the year.

Redstone's preliminary results were published in July last year. All that finnCap could say about the date for those this year is that it would be before the statutory end date of end September!

Cheers,

Mark

[bill216] 11/5/2013 17:49

I wrote to Simon Thompson at IC to see if I could generate some more interest in RCN, here's his reply, so here's hoping!

Dear Mr Maryon

I will have a look at Redcentric and see whether there is a strong enough investment case for us to reinstate coverage.

Thank you for bring this to my attention.

Yours sincerely

Simon Thompson
Companies Editor
Investors Chronicle
Financial Times Group
One Southwark Bridge
London SE1 9HL

Tel: [phone]
e-mail: [e-mail]


On 9 May 2013 08:56, Bill Maryon wrote:
Hello Simon
> I wondered if you had looked at Redcentric (RCN). It doesn't even come up on the search on the IC site. I am a holder, having had Maxima shares, and managed to profit a bit from the MM's slowness to reprice on the demerger last month.
> But, the purpose of the demerger was to increase the valuation of Redcentric and this has happened to a small degree but the p/e is still pretty low for what could be a growth story.
> Might be worth researching. Any thoughts welcome!
> Cheers

[james8] 09/5/2013 09:01

£1m contract win

[marben100] 30/4/2013 12:08

Thanks Simon

[simon gordon] 30/4/2013 11:25

Finncap - 24/4/13:

03/14
T/O - 47.5m
PBT - 6.2m
EPS - 8.9p

03/15
T/O - 50m
PBT - 7.5m
EPS - 10.6p

[bill216] 29/4/2013 08:44

Morning Star says 8.9 2014 and 10.6 2015 presumably froM
House broker

[jaws6] 25/4/2013 07:30

Marben
Today talked in Times tiddler to watch

[simon gordon] 24/4/2013 15:20

Hi Marben,

Do you happen to know what the EPS forecast is for 2013 and 2014?

Thanks

[marben100] 24/4/2013 15:13

The "accounting reference date" is 31st March. I intend to speak to the co/PR to find out when results can be expected (and whether there'll be any sort of trading update), but I'd expect the prelims by the end of June, at the latest.

There's a lot of good info. in the admission document, and I intend to go through it and write something - but I have a number of other things ahead of that in my schedule.


Thanks for all the good wishes. :0)

Cheers,

Mark

PS to save going thru' DT, the above post by "Lacy2" leads to a Proactive article:

[bill216] 24/4/2013 13:05

Thank you for the thread. Any ideas on When the next reporting will be? Do we have to wait 6 months perhaps?
Looking forward to your £1.31 being attained!
I managed to sell Redstone at 3.5p but only because I was too slow on the Monday as I couldn't believe the price hadn't fallen at 8 am !
Oh well.

[jaws6] 24/4/2013 11:36

marben
good luck with thread.

[varies] 24/4/2013 11:29

marben
Thank you for starting this thread