Resilient results for managed services provider
Redcentric, a listed Harrogate-based IT managed services business, says its total revenues have grown 4% to £91.4m from £87.5m in its full year results for the year ended 31 March 2021.
Recurring monthly revenue grew by 5.5% to £81.9m (FY20: £77.6m), representing 90% (FY20: 89%) of the total revenue.
The Group reported profit before taxation of £11.5m in FY21 (FY20: loss of £10.6m). Adjusted EBITDA increased by £4m (19.3%) to £24.6m and adjusted operating profit increased by £4.6m to £15.2m.
During the financial year, the company repaid in full its revolving credit facility.
Redcentric says acquisition opportunities for both scale and capability are a key part of its strategy, and it anticipates completing at least one acquisition during this financial year.
Peter Brotherton, CEO, said the firm has enjoyed an extremely productive year, with a very robust financial performance in line with expectations set before the pandemic.
He added: “We are now an efficient and fully integrated business delivering sector leading financial metrics including high recurring revenue, strong EBITDA margins and excellent cash generation.
“Notwithstanding such a resilient set of results, it is impossible to avoid the impact of the ongoing Covid uncertainty.
“Throughout the Covid-19 pandemic we have experienced customer delays regarding decisions on large-scale IT projects.
“These delays have persisted into FY22 and consequently we expect revenues and EBITDA in H1 FY22 to be broadly flat with modest growth returning in the second half of FY22 once the country returns to a more normalised position.
“We remain confident about our medium-term outlook, with an encouraging pipeline of potential new business which continues to gather momentum.
“With such a strong balance sheet we are ideally placed to supplement our organic growth strategy with targeted acquisitions for both scale and capability.
“The next phase of our journey is to capitalise on our scale, financial strength and customer proposition to enable us to take part in the inevitable industry consolidation.”
