Redcentric confident as InTechnology deal delivers
IT group Redcentric announced this morning that trading is “comfortably” in line with market expectations as it said the acquisition of Yorkshire-based InTechnology was delivering the benefits the group expected.
The group, which swooped for Harrogate-based InTechnology last year in a £65m deal last year, said recent recent contract wins and pipeline underpin a positive outlook for its next financial year.
“Trading across the group has continued to be in line with the board’s expectations and consequently Redcentric expects its results for the year ended 31 March 2014 to be comfortably in line with market expectations. The group enters its new financial year with a good pipeline of new business opportunities underpinned by recent contract wins.”
Redcentric said it currently anticipates that net debt at the year end will be in the region of £12.5m and is expected to “reduce significantly” during 2014.
“Redcentric remains on target to realise the synergies anticipated at the time of the acquisition of InTechnology. The integration of the two businesses is progressing as planned as the group seeks to combine all of its operations,” the company said.
The group also confirmed its intention to declare a maiden dividend.
“The acquisition of inTechnology is delivering the benefits that we expected. An encouraging pipeline and recent contract wins underpin organic growth which allied to a very strong base of contracted revenues puts the group in a solid position to continue to deliver attractive shareholder returns.”
The group expects to report its preliminary results for the year ended March 31 on June 16.
