Yorkshire IT services group Redcentric is to return up to \u00a31.5m to shareholders through a share buyback programme following the \u00a3123m sale of its data centre business.<\/p>\n
The AIM-listed managed services provider said its board had approved the programme as part of its wider strategy to deliver shareholder value.<\/p>\n
Redcentric will begin buying back its ordinary shares on the open market today, with the programme running until 30 September 2026.<\/p>\n
The company has appointed its broker, Cavendish Capital Markets, to manage the programme independently, with purchases dependent on market conditions, the share price and available trading volumes.<\/p>\n
Shares bought back will be held in treasury.<\/p>\n
The move follows Redcentric’s \u00a3122.85m disposal of its Data Centres business to Stellanor Datacenters Group, completed in May.<\/p>\n
The transaction generated an initial cash payment of \u00a3115.4m, with the remaining balance subject to post-completion financial reconciliations.<\/p>\n
Redcentric now expects that outstanding amount to be settled by the end of September.<\/p>\n
The company said the completion of the sale had strengthened its ability to return capital to shareholders, with a further update expected once the final proceeds have been received.<\/p>\n
That update is expected to include the potential reintroduction of a progressive dividend policy as well as further share buybacks.<\/p>\n
The latest move therefore represents the first step in Redcentric’s plans to deploy the proceeds from the data centre disposal.<\/p>\n
The company, which provides managed IT and communications services to UK businesses and public sector organisations, has been reshaping its operations following the sale.<\/p>\n
The data centre disposal significantly changes the group’s capital position and leaves shareholders looking to the forthcoming results for a clearer picture of the business following the transaction.<\/p>\n
Redcentric is due to publish its audited results for the year ended 31 March 2026 in September.<\/p>\n
The company said it currently has no other unpublished price-sensitive information.<\/p>\n
The buyback comes with a particular caveat because of the relatively limited liquidity in Redcentric’s shares.<\/p>\n
The company warned that purchases on any trading day could represent a significant proportion of the daily trading volume and may exceed 25% of average daily trading volume.<\/p>\n
As a result, Redcentric will not benefit from the relevant market abuse regulation exemption governing share buybacks.<\/p>\n
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