(Alliance News) - Redcentric PLC on Thursday reported a swing to loss in its recent financial year, but underlying earnings improved slightly, and the IT service management company maintained its dividend.
Redcentric had been scheduled to release its results for the financial year that ended March 31 back in July. However, it had to delay them as the audit wasn't complete.
On Thursday, the Harrogate, England-based company reported a GBP12.5 million pretax loss for financial 2023, swung from a GBP5.5 million profit the year before. Revenue rose by 52% to GBP141.7 million from GBP93.3 million, largely thanks to a series of acquisitions, but Redcentric booked higher depreciation and exceptional charges than the year before.
Adjusted earnings before interest, tax, depreciation and amortisation rose by 3.3% to GBP24.5 million from GBP23.7 million.
Revenue and adjusted Ebitda were in line with the guidance the company provided back in July.
Redcentric declared a 2.4 pence final dividend, resulting in a total annual payout of 3.6p, both unchanged from the year before.
Adjusted net debt, excluding lease liabilities, jumped to GBP35.6 million on March 31 from just GBP1.5 million a year before.
Looking ahead, Redcentric said it expect organic growth rates seen in the past 12 months to continue in the remainder of the current financial year. It said recent net new business when converted into revenue equates to an organic growth rate of about 6%.
"The integration of the five acquisitions undertaken in the last two financial years is now largely complete, with the savings pertaining to the remaining energy conservation measures and closure of the Harrogate Data Centre to be realised before the end of the current financial year," commented Chief Executive Officer Peter Brotherton.
"The acquisitions have resulted in a significant increase in revenues and much improved organic growth. Improvements in profitability will follow in FY25 once the synergy and energy efficiency programmes have been completed and the much reduced electricity commodity prices take effect."
Recentric shares were down 4.6% to 124.00 pence on Thursday morning in London, but they remain up 12% over the past 12 months.
By Tom Waite, Alliance News editor
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.
Redcentric (RCN)