LONDON (Alliance News) - IT managed services provider Redcentric PLC on Monday said it is confident on its outlook for the year and is trading in line with its expectations as its pretax profit fell due to costs related to its acquisition of Calyx Managed Services but rose adjusting for these one-offs.
Redcentric's pretax profit for the half to the end of September was GBP1.4 million, down from GBP3.9 million, due to it booking one-off acquisition and integration costs on Calyx, which it acquired in April for GBP12.0 million.
Stripping out the costs related to the deal, its adjusted pretax profit rose to GBP5.0 million from GBP4.1 million, however, as revenue rose to GBP54.0 million from GBP46.8 million, boosted by Calyx and by 8.0% organic growth for the business. Recurring revenue rose to GBP43.9 million, up 18% and 12% on a like-for-like basis.
Redcentric said it would hike its interim dividend to 1.5 pence per share, up from 1.0p, thanks to the strong underlying performance in the half.
"Redcentric has continued to perform well in the first half, with some very impressive contract wins, good sales momentum and the successful integration of Calyx. Our focus continues to be on growing our recurring revenue base by providing our customers with market leading services, allowing them to concentrate on their core business," said Chief Executive Fraser Fisher.
Shares in Redcentric were down 3.7% to 189.52 pence on Monday morning.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Redcentric (RCN)