(Alliance News) - IT managed services provider Redcentric PLC said on Tuesday annual revenue slipped, resulting in a decline in profit, but the firm nonetheless brought back its final dividend.
Revenue fell 6.7% to GBP93.3 million for the year to March 31, versus GBP100.0 million the year before. Recurring revenue made up 86% of this figure, versus 87% the year prior.
As a result of the lower revenue, the company's pretax loss widened to GBP1.4 million from GBP493,000 the year before.
Redcentric declared a final dividend of 1.0 pence, bringing the total for the year to 1.4p. In addition, the board will be seeking approval at the upcoming annual general meeting to buyback up to 5% of the company's issued share capital.
The firm did not pay any dividends in its previous financial year.
The company said recent board changes, operational improvements and financial stability all demonstrate that Redcentric is "well positioned" for the future and a return to organic revenue growth.
"Our cash performance continues to be excellent and this, combined with our overall confidence in the future of the group, has allowed us to announce an improved dividend policy and seek authority to commence a share buyback programme," said Chief Executive Peter Brotherton.
Shares in Redcentric were down 1.3% at 79.15 pence on Tuesday.
Redcentric (RCN)