LONDON (Alliance News) - IT managed services company Redcentric PLC on Thursday said costs related to its recent acquisitions meant pretax profit dipped in the year to the end of March, but revenue grew and the group hiked its dividend as it expressed confidence in its outlook.
Redcentric said pretax profit for the year to March 31 was GBP7.4 million, down from GBP7.8 million a year earlier primarily due to costs related to the acquisition and integration of Calyx Managed Services and data centre provider City Lifeline.
Revenue grew to GBP109.5 million, up 16% from GBP94.3 million the prior year, helped higher by the contribution from acquisitions and 8.0% organic growth. Recurring revenue grew 17% to GBP90.2 million from GBP76.8 million and now represents 82% of Redcentric's total revenue, up from 81% in its 2015 financial year.
The group declared a final dividend of 3.0 pence per share, up 20% year-on-year, and its total payout will rise 29% to 4.5p from 3.5p.
"These results show that Redcentric has continued to follow its strategic plan with very solid organic growth and recurring revenue being augmented by two successful acquisitions in the year. This combination reflects the strength of the underlying platform, and the board's confidence in continuing to deliver shareholder value in the future," said Chairman Chris Cole.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.