IT services firm surpasses £100m-turnover mark

IT SERVICES business Redcentric has topped a year of management changes and acquisitions by surpassing the £100m turnover mark.

Revenue for the year to 31 March 2016 reached £109.5m up from £94.3m, although pre-tax profits at the Harrogate firm could not keep up with growth, falling slightly to £7.4m from £7.8m.

Following a year with no acquisitions, in April 2015 Redcentric acquired Calyx Managed Services Ltd for £12m. However the company said Calyx was sub-scale and unprofitable.

Subsequently Redcentric closed Calyx’s main office in Didsbury, Manchester in September 2015. From that date, all services have been provided to the Calyx customers from Harrogate and Hyderabad.

In addition, in January 2016 acquired City Lifeline Ltd for £4.8m. The company operates a data centre in London’s Tech City and it is being integrated within the firm.

Since it started life as a new company in April 2013, staff numbers have grown in the past year from 455 to 513 and last November Fraser Fisher, previously chief operating officer, took over from Tony Weaver as chief executive officer.

Fraser Fisher, chief executive officer of Redcentric commented: “The good progress seen in the first half continued into the second half of the year, and we’re pleased with the 17% growth in our recurring revenue base and the increase in profitability.

“The two acquisitions we completed during the year have been integrated and are performing well. We are continuing to invest in the business to provide our customers with a broad range of solutions delivered from our own infrastructure, allowing them to concentrate on growing their own businesses.”