CEO resigns as IT firm Redcentric reports disappointing sales
The CEO of Redcentric has resigned after the IT services firm reported a fall in revenue for the half year mark of its financial year.
For the six months ending 30 September, the Harrogate-based company saw revenue reduce by 7.6% to £47.5m, compared to the prior year.
The shortfall in revenue resulted in a £2.1m reduction in gross profit which was partially offset by £1.1m of operating cost savings. As a result, adjusted EBITDA decreased by £1m or 11% to £8.1m.
During this period, Redcentric also reported a £122,000 loss on ordinary activities before taxation.
Cash flows, however, have remained strong allowing a reduction in net debt from £27.7m at 31 March to £22.6m at 30 September 2018.
Redcentric also confirmed the resignation of Chris Jagusz both from the board and as chief executive. Peter Brotherton, CFO, will assume chief executive responsibilities while a formal process to appoint a permanent chief executive is carried out.
Chris Cole, chairman, said: “The results announcement today, whilst showing Redcentric’s resilience, does not demonstrate progress with regard to sales, delivery and execution. The Board has therefore decided that Redcentric’s growth ambitions would be better served with a change of leadership.
“We have therefore taken the decision that Chris Jagusz will leave us forthwith. We would like to thank Chris for his efforts.”
