Last checked at 16 Mar 2015 07:00
16 March 2015
Redcentric plc
("Redcentric" or "the Group")
Pre-close Trading Update
Redcentric plc (AIM:RCN), a leading UK IT managed services provider, is today issuing a pre-close update covering trading and financial progress for the second half of the financial year to 31 March 2015. The Group expects to announce its preliminary results on Monday 15 June 2015.
Highlights
· Strong performance maintained into the second half of the year with continued organic growth in contracted recurring revenues
· Revenue and EBITDA for the year expected to be comfortably in line with market expectations
· Strong cash generation allowing a continued reduction in net debt as well as a progressive dividend policy
· Focus remains on continued organic revenue and EBITDA growth
· Low level of gearing enables the Group to consider accretive acquisitions
Trading in the second half of the year has continued the pattern reported in the first half, with good performance across the whole business, strong organic growth in recurring revenues and continued expansion of EBITDA margins.
The Group's cash-flow continues to enable a reduction in net debt in line with expectations alongside the progressive dividend policy. The Group expects to recommend a final dividend for the year with the preliminary results on 15 June 2015.
With high levels of recurring revenue and strong EBITDA margins and cash-flow, the Group is well set to maintain its growth momentum.
Tony Weaver, Chief Executive of Redcentric, commented:
"The excellent progress reported in our interim statement has continued and I am delighted that we expect our performance for the year to be comfortably in line with market expectations.
We continue to focus on the high quality delivery of critical services to our customers, earning a reputation as the independent provider of choice to the UK mid-market.
The strong business platform we've built is well-placed to continue to grow, and we are now looking to make accretive acquisitions to accelerate that growth."
Enquiries:
Redcentric plc Tel. +44 (0)845 034 1111
Tony Weaver, Chief Executive
Fraser Fisher, Chief Operating Officer
Tim Coleman, Chief Financial Officer
finnCap - NOMAD & Broker Tel. +44 (0)20 7220 0500
Charlotte Stranner / Simon Hicks
MXC Capital Advisory LLP - Financial Advisor Tel: +44 (0)20 7965 8149
Marc Young
Newgate Communications Tel: +44 (0)20 7653 9850
Tim Thompson / Jasper Randall