Contract Wins

RNS Number : 9617H

Redcentric PLC

27 June 2013

 



27 June 2013

Redcentric plc

 ("Redcentric" or "the Company")

Contract Wins

Redcentric plc (AIM:RCN.L), a leading end to end managed service provider delivering innovative technology to improve business productivity and efficiency, is pleased to announce that it has signed two new managed service contracts with combined revenues of over £6m.

Redcentric will provide managed services, networking and connectivity to a property developer in a new three year contract.  The deal is worth approximately £4.7m in revenue over the course of the contract. Redcentric's consultancy services will form a key part of transitioning the new customer to its services. While most of this revenue will fall outside the current financial year this type of contract will contribute significantly to Redcentric's annuity base and validates the quality and breadth of its end-to-end services.

In addition, an existing governmental customer has extended its managed services contract with Redcentric. The Company will continue to provide support and professional services for an additional year in a contract extension worth £1.2m.  The Company also signed a further managed service contract with the same customer for £300k to support additional elements of their environment including troubleshooting support and hardware maintenance.

Fraser Fisher, Chief Operating Officer, commented, "It is extremely pleasing to announce Redcentric's largest new contract win since the demerge from Redstone earlier this year. Both contracts clearly demonstrate the strength of the Redcentric proposition: annuity revenue from a mix of services, fully managed by Redcentric and underpinned by our consultancy services. These contract wins demonstrate that our approach is appealing to new and existing customers alike."

For further information:

Redcentric plc Tony Weaver, Chief Executive Peter Hallett, Chief Financial Officer	Tel. [phone]
finnCap - NOMAD & Broker Charlotte Stranner / Stuart Andrews	Tel. [phone]
MXC Capital Advisory LLP Marc Young	Tel. [phone]
Newgate Threadneedle Josh Royston / Hilary Millar	Tel. [phone]

 

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