Strong foundations for profitable growth at IT group
Managed IT services business, Redcentric, has reported strong organic growth driven by structural events and effective cross selling.
Publishing its preliminary full year results for the year ended 31 March 2024, the Harrogate-headquartered company records a revenue rise of 15.2% to £163.2m (FY23: £141.7m) and reported loss before tax reduced by £7.8m to £4.7m (FY23: £12.5m).
Redcentric also notes that its adjusted EBITDA of £28.3m is 15.6% ahead of FY23.
CEO Peter Brotherton, who has has confirmed he will retire and step down from his position as soon as a suitable successor is appointed, said: “FY24 was a very productive year with all the original integration programmes completed, generating cost savings either in line or slightly ahead of our expectations.
“The electricity conservation measures are now yielding very significant volume savings, which combined with secured lower electricity prices from 1 April 2024, are expected to reduce electricity costs by £8.1m in FY25.
“The focus for FY25 will be to drive organic revenue, profit and cash flow growth by cross selling the broadened product and solution portfolio into the enlarged customer base, whilst also capitalising on the structural opportunities presented by AI related demand and the recently awarded VMware Pinnacle partnership agreement.
“Acquisitions undertaken in FY22 and FY23 have significantly increased the scale and capability of the business. Revenues and profits for FY25 are on course to be double what they were pre the acquisitions and solid foundations are now in place for sustainable and profitable growth.”
Redcentric adds that while while organic growth is the priority for FY25, it continually assesses M&A opportunities in the market.
The business notes that with £40m of its £80m committed bank facility drawn so far, the company has significant firepower “should an exceptional opportunity present itself.”
