Redcentric Share News (RCN)

(Sharecast News) - Redcentric reported a solid trading performance for the financial year ended 31 March on Wednesday, with double-digit growth in adjusted EBITDA and continued momentum from its acquisition strategy and operational improvements.

The AIM-traded company also announced the appointment of Michelle Senecal de Fonseca as its new chief executive officer, with immediate effect.

Revenue for the year rose 4.2% to £170m, while recurring revenue increased 4% to £155.1m, representing 91.2% of total revenue.

Adjusted EBITDA grew 30.7% to £37m, reflecting enhanced cost efficiencies and the integration of previous acquisitions.

The company said its adjusted net debt stood at £41.8m, broadly stable year-on-year despite working capital pressures and dividend payments of £5.7m.

Operationally, Redcentric completed the complex separation of its two core businesses - data centres and managed services - which required significant management focus but was necessary to establish clear business lines.

Segmental financial reporting would be introduced with the release of audited results in August.

Capital expenditure during the year totalled £11.5m, slightly below expectations due to the delay of a planned colocation agreement.

Investment was directed toward infrastructure security, systems development, and contract-related enhancements.

Redcentric said it had also secured strategic partner status with VMware following its acquisition by Broadcom, one of only seven UK providers to do so, which it said had already led to stronger customer engagement and efficiency gains.

Michelle Senecal de Fonseca would meanwhile succeed Peter Brotherton as CEO.

A former executive at Vodafone and Citrix, the board said she was bringing extensive experience in cloud and hosting services, and had served on Redcentric's board as a non-executive director since February.

Brotherton would remain available to support the business in an advisory capacity.

"The 2025 financial year was a transformative year for the company - a year in which it delivered significant revenue and EBITDA growth predominantly driven by prior strategic acquisitions and operational excellence," said chairman Richard McGuire.

"The entire Redcentric team successfully delivered the separation of our MSP and DC divisions, and management's resilience and focus on cost efficiency have positioned the company for continued success.

"Whilst the board joins me in welcoming Michelle to her new role as CEO, they would also like to thank Peter for his strong leadership to date and we are pleased that he will remain with the company for a period of time as a strategic advisor and support a seamless transition of CEO duties."

McGuire said he "looked forward" to working with Senecal de Fonseca, adding that she had "significant" sector experience.

"In the 2026 financial year, our aim is to build on the strong foundations laid during the year, to accelerate organic growth, streamline operations, and enhance returns for our shareholders."

Redcentric confirmed it intended to maintain its dividend policy, with the 2025 payout of 3.6p per share expected to continue into the new financial year.

At 1106 BST, shares in Redcentric were down 2.32% at 122.1p.

Reporting by Josh White for Sharecast.com.