Redcentric PLC Pre-close Trading Update and appointment of COO (1452L)
29 September 2016 - 7:01AM
UK Regulatory
TIDMRCN
RNS Number : 1452L
Redcentric PLC
29 September 2016
29 September 2016
Redcentric plc
("Redcentric" or the "Company")
Pre-close Trading Update and appointment of Chief Operating
Officer
Redcentric plc (AIM:RCN), a leading UK IT managed services
provider, is today issuing a pre-close trading update for the first
half of the financial year ending 31 March 2017.
Business update
Through the first half of this year, Redcentric's growth pattern
has been similar to previously, with upper single digit organic
growth in recurring revenues being augmented with acquisitions to
deliver low double digit headline recurring revenue growth. This
has been offset by the planned continued reduction in low margin
product sales.
The realisation of synergies from prior acquisitions and a
beneficial shift in the revenue mix have helped to drive a
mid-teens percentage increase in EBITDA.
Cash generation has improved during the period with a
corresponding reduction in debtor days. Net debt is expected to
have fallen from 1.0x EBITDA at 31 March 2016 to under 0.8x
annualised adjusted EBITDA at the half year, reflecting stronger
underlying cash-flow generation and growth in EBITDA. Including the
proceeds of the sale of the Cambridge network announced and
received on 26 September 2016, net debt is expected to be around
0.6x annualised adjusted EBITDA at the half year.
Strengthening of Operating Board
Redcentric is pleased to announce the appointment of Mo Siddiqi
as Chief Operating Officer. Mo joins from Computacenter, an IT
infrastructure services provider, where he was International
Director. Under his leadership, international contracts became a
significant contributor to Computacenter's Group Contract Base,
including many of the company's largest customers. He joins
Redcentric's Operating Board and will be responsible for Sales and
Operations.
Outlook
The Board remains confident in the outlook for the business and
expects to deliver results in line with its expectations for the
year.
Redcentric is expecting to report results for the six months to
30 September on 14 November 2016.
Fraser Fisher, Chief Executive Officer of Redcentric,
commented;
"Our focus on the provision of critical IT services delivered
under long term contracts through a recurring revenue model has
continued to provide stability for the business, and allowed us to
continue to grow the business through the first half of the year.
We have won a number of new customers and have expanded services to
many existing customers which sets us up well for the second half
of the year and beyond."
Enquiries:
+44 (0)845 034
Redcentric plc 111
Fraser Fisher, Chief Executive Officer
Tim Coleman, Chief Financial Officer
+44 (0)20 7260
Numis Securities Limited - Nomad & Joint Broker 1000
Simon Willis / Oliver Hardy / Ben Stoop
+44 (0)20 7220
finnCap Ltd - Joint Broker 0500
Stuart Andrews / Rhys Williams
+44 (0)20 7965
MXC Capital Markets LLP - Financial Adviser 8149
Marc Young / Charlotte Stranner
+44 (0)20 7353
Tulchan 4200
James Macey White / Matt Low
This information is provided by RNS
The company news service from the London Stock Exchange
END
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