City briefs: Redcentric and Kromek

Harrogate-based company Redcentric, which was censured by the Financial Conduct Authority (FCA) for committing market abuse in 2015-16, has finished paying out restitution.

The IT managed services provider says “all valid claims have been settled” and its Restitution Scheme has now concluded.

It reports the final number of settlements under the scheme is as follows:

Number of Net Relevant Share Purchases the subject of Restitution Payments: 47,727,684

Number of Ordinary Shares allotted: 1,314,244

Cash payments: £6,649,815.08

Peter Brotherton, the firm’s CEO, said: “We are pleased that the restitution scheme was so effective, with holders of nearly 80% of eligible share purchases making a successful claim.

“Now that the FCA investigation and restitution scheme are both fully concluded, we look forward to focusing solely on operating and growing the business to deliver maximum shareholder value.”

Redcentric first announced the compensation programme on 26 June this year.

It is the first time that an AIM-listed company has offered to implement its own scheme to pay compensation.

The business accepted it issued unaudited interim results and audited final year results which “materially misstated its net debt position and overstated its true asset position”.

The FCA said investors were misled and paid more when purchasing shares than they would have done had they known the true position, and estimated the losses to those shareholders at £43m.

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Radiation detection technology business, Kromek, has been awarded two contract extensions by a European government-related company to provide network solutions of its D3S-related technologies to counter nuclear terrorism.

The contract extensions are worth a total of £460,000 for the Huddersfield-based business and will be delivered in the current financial year.

The contract extensions are a further step towards Kromek providing a full wide-area system roll-out for this customer, a company that works with a European government to detect and protect against potential nuclear threats. 

Kromek’s solutions will be used for inland security wide-area threat monitoring with the purpose of protecting critical infrastructure and public spaces and includes the provision of enhancing network data security.

It brings the total awarded by this customer to just over £2.5m over the last two years.

Dr Arnab Basu, CEO of Kromek, said: “These contract extensions are indicative of the rebound in commercial activity we are experiencing across our business and further evidence that normal trading patterns are returning for us as well as our customers.

“The D3S family of products is at the forefront of the innovative solutions being adopted by governments worldwide for countering threat of nuclear terrorism.

“These products, as part of our radiation detection solutions, have been deployed in over 20 countries to keep critical infrastructure and public spaces safe.

“We look forward to working with this customer and helping with their roll-out programme over the next few years.”

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