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(Alliance News) - Redcentric PLC said on Tuesday it expects its half-year revenue to increase, after five acquisitions were completed between September 2021 and July 2022.
The North Yorkshire-based cloud and data connectivity provider said revenue was expected to increase by 39% to GBP61.5 million in the six months that ended September 30 from GBP44.3 million a year ago.
However, it expects its adjusted earnings before interest, tax, depreciation and amortisation to fall to GBP11.7 million from GBP11.9 million a year prior.
Redcentric noted that exceptional costs of GBP4.8 million were GBP2.5 million higher than anticipated due to, in part, restructuring costs relating to the 4D Data Centres Ltd and Sungard Availability Services UK Ltd acquisitions. Redcentric bought 4D for GBP10.1 million and Sungard for GBP10.0 million in July.
Redcentric's adjusted net debt subsequently multiplied to GBP39.3 million from GBP1.5 million six months ago.
It also reported an increase in new sales orders during the second quarter of its financial year 2023, noting order levels to be ahead of pre-Covid-19 levels.
Redcentric said it had strengthened its cyber security, hyper-cloud and consulting capabilities following the acquisitions, diversifying its product offerings.
The company signed a new GBP100 million banking facility on April 27, allowing it access to GBP80 million of committed funds with competitive interest rates to support its acquisition strategy.
Its unaudited interim results for the half year period will be published on December 8.
Shares in Redcentric fell by 4.2% to 114.00 pence in London on Tuesday afternoon.
By Greg Rosenvinge; gregrosenvinge@alliancenews.com
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