Last checked at 8 Aug 2014 07:00
8 August 2014
Redcentric plc
("Redcentric", "the Company" or "the Group")
Trading update and AGM statement
Redcentric plc (AIM:RCN), a leading UK IT managed services provider, is today issuing a trading update covering trading and financial progress in the year to date. This statement will be made at Redcentric's Annual General Meeting which is taking place at 12.00pm today at 100 Fetter Lane, London, EC4A 1BN.
Trading update
· Strong first quarter, delivering on all key performance indicators
· Organic growth at top end of management expectations
· Strong Q4 cash flow has continued into Q1, demonstrated by payment of maiden dividend
· Integration proceeding well
· Comfortable with full year market expectations
Financial performance in the first quarter of the year has continued to be strong, with revenue and profitability in line with management's expectations. This represents a significant improvement in year-on-year performance, with organic growth at the upper end of management's expectations. Cash generation has continued to be strong, allowing continued progress in net debt reduction, comfortably in line with plans. The Company's maiden dividend of 1.0p per share will be paid to shareholders on 5 September 2014.
Order intake has been strong; the Company has signed a significant number of new contracts in the period, both with new customers, and with existing customers for the provision of additional services. This progress underpins the Boards confidence in meeting full year expectations.
The integration of InTechnology Managed Services ("IMS") (acquired in December 2013) with Redcentric continues to progress well. The majority of the integration work was performed in the prior financial period leading to the expected synergies being delivered in the current financial year. As part of the integration work programme, unified branding has been launched across the Group, and as from 1 July 2014 all trading is taking place from a single legal entity, and from a single set of core systems.
Tony Weaver, Chief Executive of Redcentric commented:
"Following a strong performance last year, the trading pattern in the first quarter has continued. We are pleased that so many new and existing customers are recognising the work our team has done in creating one of the UK's leading managed service providers, and are committing themselves to Redcentric in increasing numbers. Our underlying platforms and infrastructure continue to grow in strength as we work towards completing the integration of IMS with Redcentric. We remain confident of continued good progress throughout the year."
Enquiries:
Redcentric plc Tel. +44 (0)845 034 1111
Tony Weaver, Chief Executive
Fraser Fisher, Chief Operating Officer
Tim Coleman, Chief Financial Officer
N+1 Singer - NOMAD & Joint Broker Tel. +44 (0)20 7496 3000
Jonny Franklin-Adams / Emily Watts / Ben Wright
finnCap - Joint Broker Tel. +44 (0)20 7220 0500
Charlotte Stranner / Stuart Andrews
MXC Capital Advisory LLP - Financial Advisor Tel: +44 (0)20 7965 8149
Marc Young
Newgate Threadneedle Tel: +44 (0)20 7653 9850
Josh Royston / Hilary Millar