Redcentric Share Discussion Threads

[peterclo] 22/8/2014 09:29

Marked up today, guess it is from

FinnCap reaffirmed their corporate rating on shares of Redcentric PLC (LON:RCN) in a research note issued to investors on Thursday

[norbert colon] 30/6/2014 16:01

Hi Mark

Great to have you back on board - I have been here since the beginning and see lots of potential looking 2-3 years down the line. Your excellent research is always much appreciated.

[marben100] 30/6/2014 15:36

Well, despite my distaste at the manner in which the placing was done, I think I made a mistake selling out when I did.

Having studied the full year results - and especially the proforma figures had IMS and Redcentric been combined for the full year - this looks like a highly attractive business to me: excellent margins for contracted recurring revenues and strong growth potential for revenues, cashflow and dividends. I had been waiting for the share price to drift down post-results and was pleased to have been able to dip a toe back in the water at 114p today. Subject to results, I'd be happy to pick up more at lower prices if those prices become available.

At an EV: Adjusted proforma EBITDA of around 11, it's not exactly cheap, but I expect to see that multiple justified by growth.

Cheers,

Mark
Twitter @marben100

[marben100] 10/6/2014 07:58

re #71 the interim results posted so far are not entirely representative for a couple of reasons:

a) They do not cover a full 6 month period: "Whilst the period covered by this interim statement is eight months, the trading results of the business comprise the six month period of ownership since the managed services business was effectively demerged from Redstone plc ("Redstone") on 8th April 2013." They include the period when RCN was demerged from its parent, with listing costs etc.

"The demerger required a major integration of the three component businesses that comprised the former managed services business of Redstone plc ("Redstone"), including a consolidation of the reporting systems."


b) "On 18 November 2013 the company announced it had entered into a share purchase agreement to acquire the entire issued share capital of IMS, for a cash consideration of £65.0 million on a cash and debt free basis, adjusted to reflect normalised working capital requirements of IMS and certain capital expenditure."

"The acquisition is transformational for Redcentric, creating one of the largest independent mid-market managed services businesses in the UK"

So, it is reasonable to expect very different results in the next financial year from this one.


According to S t o c k o p e d i a, NPAT for FY14 to 31st March is anticipated to be £6.0m. But this includes less than 6 months of IMS ownership. Results will be reported on 16th June.

Cheers,

Mark
Twitter @marben100

b)

[oregano] 06/6/2014 09:33

the brokers are forecasting a 3% yield. which given the growth profile should attract some interest.

[richjp] 05/6/2014 11:09

There was a very positive article in the issue of Shares magazine which came out last Thursday.

I can't remember all the details, but they said there was the potential of a much increased divi because of their cash flow plus the possibility of organic growth.

I think they suggested that just over 13P would be good value in the short term.

[oregano] 05/6/2014 09:49

they bought intechnology which made £8m. full year results out on the 16th will give you a clear picture.

[mrmomentumt] 05/6/2014 09:41

Morning all! Following this morning's announcement, am doing some research into RCN. Would appreciate some guidance on the following please:

At the interims, they reported a PBT of £0.8m. Doubling that for the full year would suggest a PBT of £1.6m for 2014. Does that sound about right? On a MCAP aof approx £170m it seems quite expensive?

On Digital Look, I can't see a 2014 PBT forecast but for 2015 they have £17.10m which seems a massive leap! Would appreciate some insight here on how realistic/sustainable these numbers are. Seems like an interesting company that warrants interest.

Thanks in advance!

[oregano] 05/6/2014 09:19

that is a material win in the context of this group. a PE of 12x this year, growing well. this could materially re-rate.

[saucepan] 06/4/2014 10:55

Thanks, noted.

[leopold555] 06/4/2014 10:50

I second what Twitterman says. I am in CTP my largest holding now and intend to buy more. Ian Smith and Ton Weaver have bought 10 million shares in CTP, no debt and they have a profitable company already. They have just sold 4.5 million shares in Redcentric to invest in another venture. That venture could be CTP which is hunting for the right acquisition?

[twitterman] 03/4/2014 08:02

I see henderson are selling here now.

Saucepan/ simon it may be worth casting your eyes over CTP. Tony weaver and Ian Smith who have been selling here have recently bought £500k worth of shares in CTP.

The company is cash rich and looking at acquisition deals. Could be another COMS type scenario there.

1p to 10p as both Ian and Tony are serial entrepreneurs

[citymohawk] 01/4/2014 11:08

LOL! What a company indeed.

[saucepan] 19/3/2014 18:52

Hi Simon

Nice to have some company. ShareScope shows A Rolling P/E 2 of 12.36 and a Slater PEG of 0.39, and currently three years of attractive forecast growth; so yes, hopefully a Zulu in the making.

[simon42] 19/3/2014 18:36

I'm in today. Not amazingly cheap as it stands but I think it justifies a premium rating and has plenty of potential and potential to surprise to the upside. A Zulu in the making. Give it a couple of years.

[saucepan] 19/3/2014 12:29

Added today at 123p and 124p to buy.

[saucepan] 24/2/2014 08:34

Hi folks.

I spotted the contract win and have opened an initial position here, paying 117.9p. On some preliminary research, RCN ticks a lot of the right boxes.

[chrisgail] 24/2/2014 07:35

Another contract win, this does seem to be a Company that just gets on and does it and the share price responds, long may it continue.

[share_shark] 13/2/2014 07:19

RNS CONTRACT Win !

[pomp circumstance] 06/2/2014 21:59

Maim men still have an exit to complete.

[deucetoace] 06/2/2014 21:45

Lots of volume with a few large trades going through the last couple of days. I wonder what is happening. Any ideas?

[cloudwars] 15/1/2014 15:11

www.businesscloudnews.com/2014/01/13/hays-recruits-redcentric-for-cloud-based-wan-lan/

[richjp] 04/12/2013 09:39

cloudwars, no I have not but I will now.

Thank you for the information.