Listed IT business reports better than expected trading
Harrogate-based IT managed services provider, Redcentric, says trading for the half year has been slightly ahead of board expectations.
In an update this morning, the business says its data centre and network restructuring programme has been successfully completed, so it will benefit from slightly increased annualised cost savings.
Redcentric’s net debt at 30 September 2020, excluding leases previously classified as operating leases under IAS17, was £1.1m (31 March 2020: £13.5m) reflecting continuing strong cash collections and £4.2m of net cash benefit as a result of an equity placing to raise £5.8m.
While the company initially took advantage of the Government’s COVID-19 VAT deferral scheme, this was repaid in full by 30 September 2020.
Total net debt as at 30 September 2020, including £15.9m of liabilities previously classified as operating leases under IAS17, is expected to be £17m (31 March 2020: £34.5m).
Most of Redcentric’s staff continue to work remotely, and no employees have been furloughed to date.
The company intends to announce its results for the half year ended 30 September 2020 on 17 November 2020.
