Managed services provider ‘poised for growth’

Harrogate-based Redcentric says it is poised for growth after a productive year, and is now nearing the historical levels of sales orders it enjoyed before the outbreak of the pandemic.

The business, an IT managed services provider offering cloud and data connectivity solutions, has released its provisional results for the financial year ending 31 March 2022, which include revenues of £93.1m (FY21: £91.4m) and adjusted EBITDA of £24m (FY21: £24.6m).

Redcentric says new sales orders during the second half of the year improved significantly on the first half and it is also seeing a resumption of large-scale projects.

Peter Brotherton, chief executive officer, said: “These results reflect the resilient nature of the business and are more impressive given the challenges associated with high electricity prices, equipment shortages, a tight labour market and difficult trading conditions during the Covid-19 pandemic. 

“After several years of repositioning the business, we are now totally focused on both organic and inorganic growth. 

“We have demonstrated that we can make highly accretive acquisitions both in terms of profitability and capability and our new £100m bank facility, supported by our strong cash generation, will enable us to continue to invest in our business.”

The company notes electricity price increases have added £0.5m to its costs, while equipment supply chain issues have delayed both recurring and non-recurring revenues.

It adds it is well aware of the continued volatility in electricity prices and of sector-wide employment, retention and salary inflation challenges.

Redcentric says it intends to reveal its full results for the financial year ended 31 March 2022 on Thursday 21 July 2022.

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