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(Alliance News) - Redcentric PLC reported revenue and profit growth in its annual results on Thursday, but the company said it expects revenue to be flat in the future until the UK returns to normal from the virus pandemic.
Harrogate, England-based Redcentric is an IT managed services provider.
Pretax profit for the financial year that ended March 31 was GBP11.5 million, up 8.5% from GBP10.6 million the year before, as revenue rose by 4.5% to GBP91.4 million from GBP87.5 million.
Redcentric declared a final dividend of 2.4 pence, which bring its full-year payout to 3.6p following its payment of a 1.2p interim dividend. The company paid a total dividend of 1.83p in financial 2020, and it said it intends to maintain a progressive dividend policy.
"We have had an extremely productive year with many historical issues addressed and with a very robust financial performance in line with expectations set before the pandemic. We are now an efficient and fully integrated business delivering sector leading financial metrics including high recurring revenue, strong Ebitda margins and excellent cash generation," said Chief Executive Peter Brotherton.
Redcentric said its adjusted earnings before interest, tax, depreciation and amortisation margin was 26.9% in the recent year, as adjusted Ebitda rose by 19% to GBP24.6 million from GBP20.6 million.
However Brotherton said that Redcentric has suffered delays on decisions by customers on large-scale IT projects, due to Covid-19. These delays mean the company expects revenue in the first half of the new financial year to be broadly flat, with modest growth returning in the second half once the UK returns to a more normal situation.
Shares in Redcentric were down 11% at 124.00 pence each in London on Thursday afternoon.
By Amrit Sahota; newsroom@alliancenews.com
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