Pre-close Trading Update

RNS Number : 5433D

Redcentric PLC

31 March 2014

 



31 March 2014

Redcentric plc

("Redcentric" or "the Group")

Pre-close Trading Update

Redcentric plc (AIM:RCN), a leading UK IT managed services provider announces a pre-close trading update. The Group expects to report its preliminary results for the financial year ended 31 March 2014 on 16 June 2014. 

Summary

·     Trading comfortably in line with market expectations

·     Recent contract wins and pipeline underpin positive outlook for FY 2015

·     Strong Q4 cash flow

·     Integration of inTechnology is on plan

·     Intention to pay maiden dividend re-affirmed

Trading

Trading across the Group has continued to be in line with the Board's expectations and consequently Redcentric expects its results for the year ended 31 March 2014 to be comfortably in line with market expectations. The Group enters its new financial year with a good pipeline of new business opportunities underpinned by recent contract wins.

The Board has been pleased to see sustained improvements in operating cash flow conversion from the first half of the year following the expected unwind of working capital in the Redcentric business. Redcentric currently anticipates that net debt at the year-end will be in the region of £12.5 million and is expected to reduce significantly during 2014.

Integration

Redcentric remains on target to realise the synergies anticipated at the time of the acquisition of inTechnology Managed Services ("inTechnology"). The integration of the two businesses is progressing as planned as the Group seeks to combine all of its operations. A group operating board has been established across Sales, Operations and Finance and the integration programme will continue through FY2015 although the accounting and billing functions should be unified within the first half of the year.

Dividend

The Group reaffirms its intention to declare a maiden dividend with its results for the year ended 31 March 2014 marking the start of a progressive dividend policy.

Outlook

The acquisition of inTechnology is delivering the benefits that we expected. An encouraging pipeline and recent contract wins underpin organic growth which allied to a very strong base of contracted revenues puts the Group in a solid position to continue to deliver attractive shareholder returns.

Enquiries:

Redcentric plc                                                                                                                   Tel. [phone]

Tony Weaver, Chief Executive

Fraser Fisher, Chief Operating Officer

Tim Coleman, Chief Financial Officer

N+1 Singer - Nomad & Joint Broker                                                                         Tel: [phone]

Jonny Franklin-Adams / Ben Wright

finnCap - Joint Broker                                                                                                    Tel: [phone]

Charlotte Stranner / Stuart Andrews

MXC Capital Advisory LLP - Corporate Finance Adviser

Marc Young                                                                                                                        Tel. [phone]

Newgate Threadneedle - Financial PR                                                                   Tel. [phone]

Josh Royston / Hilary Millar

 

END

 

 

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