Sales orders surge at acquisitive managed services company
IT managed services provider, Redcentric, expects to confirm revenues of £61.5m for the six months ended 30 September 22 (HY22: £44.3m).
In a trading update released today, the Harrogate-based company says it has continued to perform well, with both revenue and adjusted EBITDA being in line with Board expectations.
Other results for HY23 the business will confirm include adjusted EBITDA of £11.7m (HY22: £11.9m), adjusted net debt of £39.3m (31 March 2022: £1.5m) and capital expenditure of £1.5m (HY22: (restated) £1.9m).
Redcentric notes exceptional costs of £4.8m were incurred in the period, £2.5m higher than anticipated due to additional integration and restructuring costs in relation to its 4D and Sungard acquisitions.
About half of these additional costs will result in like-for-like additional annual savings in the financial year ending 31 March 2024.
As a result of the five acquisitions completed between September 2021 and July 2022, Redcentric says it has significantly strengthened its cyber security, hyper-cloud and consulting capabilities, and materially increased its annualised revenue base by around 70%.
A spokesman for the company said: “With these acquisitions, we feel we now have one of the broadest product offerings in the market.
“Other operational highlights for the period include the signing of a new £100m banking facility on 27 April 2022, giving the company access to £80m of committed funds at very competitive rates of interest to support and accelerate our acquisition strategy.”
He added Redcentric has also enjoyed a significant increase in new sales orders during the second quarter of FY23 with order levels now substantially ahead of pre-Covid levels.
He said: “The increase in sales volumes reflects the enlarged customer base, additional capability and a restructuring and strengthening of the sales team.”