Pre-close Trading Update and Board Change

RNS Number : 6047A

Redcentric PLC

30 September 2015

 

30 September 2015

Redcentric plc

("Redcentric" or the "Company")

Pre-close Trading Update and Board Change

Redcentric plc (AIM:RCN), a leading UK IT managed services provider, announces a pre-close trading update covering the six months to 30 September 2015. The Group expects to announce its interim results on 9 November 2015. The company also announces that Fraser Fisher, currently Chief Operating Officer, is to be appointed Chief Executive Officer of the Company in succession to Tony Weaver, who remains on the Board as a non-executive Director.

Trading highlights

·     Trading in line with market expectations

·     Continued strong organic growth in recurring revenues

·     New business momentum maintained, with some notable £1m plus contract wins

·     Calyx integration on plan, full contribution in second half

·     Strong cash generation

The strong start to trading noted earlier in the year has continued through the first half, with some significant new contracts augmenting the high levels of recurring revenues, which are in excess of 80% of total revenues. During the first half several significant contracts were won, including five £1m plus contracts with both Government and commercial clients.

The integration of Calyx Managed Services, acquired in April 2015, has progressed to plan. The financial benefits of the acquisition will be felt in full in the second half of the year.

Cash generation remains strong, and the company has substantial headroom in its recently renewed banking facilities.

Board changes

Fraser Fisher, the Chief Operating Officer of the Company, will become the Chief Executive Officer of the Company on publication of the Company's interim results on 9 November 2015, in succession to Tony Weaver, who will remain on the Board as a non-executive Director of the Company.

Chris Cole, Chairman of Redcentric commented:

"Redcentric is trading strongly. The high level of recurring revenue, increasing traction in the £1m plus contract market and the successful integration of Calyx all combine to give the Board confidence in the company's prospects.

I will be delighted to welcome Fraser as our new CEO. Fraser has a wealth of operational experience and has already made a significant contribution to the business. I am pleased that Tony Weaver will remain on the Board as a non-executive director, providing business continuity as well as maintaining our important links with MXC Capital who have been supporting the development of  Redcentric's successful position in  the AIM technology sector".

Enquiries:                                                                                         

Redcentric plc  Tony Weaver, Chief Executive Fraser Fisher, Chief Operating Officer Tim Coleman, Chief Financial Officer	[phone]
Numis Securities Limited - Nomad & Joint Broker Simon Willis / Rupert Krefting / Adrian Trimmings	[phone]
finnCap Ltd - Joint Broker Stuart Andrews / Rhys Williams	[phone]
MXC Capital Markets LLP - Financial Adviser Marc Young / Charlotte Stranner	[phone]
Tulchan James Macey White / Louise Hogberg / Matt Low	[phone]

Ends

 

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