Troubled Redcentric optimistic despite “challenging” year

Harrogate IT services business Redcentric has had a challenging year after it was hit by accounting errors and the departure of its CFO, but one that was in line with revised expectations.

In November 2016 it was rocked by the announcement of financial misstatements and an investigation by the Financial Conduct Authority, which it has since remedied with significant investment in its financial department and the appointment of Peter Brotherton as CFO.

For the year to 31 March 2017, revenues reached £104m, up from the restated £102m in 2016.

Pre-tax losses narrowed to £4.2m, from £6.1m the year before.

Chris Cole, Chairman, commented: “During this challenging period for the Company our clients and employees have remained loyal and focused, thus ensuring the day-to-day externally-facing business operations have continued satisfactorily.

“At the same time the financial structure and personnel have been reinforced and changed to provide resilient and accurate reporting. We now look forward to the business operating normally and trading well in markets that provide opportunities for growth”.

Fraser Fisher, chief executive, added: “I would like to thank our Redcentric team for their hard work and dedication throughout the last 12 months. We have taken the necessary actions to strengthen the business where it needed work.

“We have a loyal client base and a solid market offering exemplified by our new business and cross selling wins. The underlying business is strong, sustainable and well positioned for the future.”