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(Alliance News) - Redcentric PLC on Tuesday said its annual revenue took a tumble, but marked a more promising start to the new financial year.
For the year ended March 31, the IT managed services provider saw its revenue fall 6.2% to GBP87.5 million from GBP93.3 million.
Redcentric's pretax loss widened to GBP10.6 million from GBP1.4 million. The company said this due to a settlement reached with the UK's Financial Conduct Authority over historical accounting misstatements uncovered in 2016, costing Redcentric GBP11.4 million.
There was however a return to recurring revenue growth at the start of the new financial year, ending next year, with all key metrics showing positive trends.
Chief Executive Peter Brotherton said: "After three years of decline, recurring revenues are now growing and account for 89% of total revenues. The efficiency and integration initiatives undertaken during the year have resulted in annualised savings of GBP3.5 million, which will boost future profitability."
The group paid a total dividend of 1.83 pence per share for the financial year, up 31% from 1.40p.
The company said the first quarter of the new year showed strong trading and was ahead of expectations.
Redcentric shares were up 1.8% at 134.36 pence each on Tuesday afternoon in London.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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