Trading Update

RNS Number : 9415B

Redcentric PLC

15 October 2020

 

Redcentric plc

("Redcentric" or the "Company")

Trading Update

Redcentric plc (AIM: RCN), a leading UK IT managed services provider, today announces a pre-close trading update for the six months ended 30 September 2020.

Trading Update

Trading for the half year has been slightly ahead of the board's expectations and the Company has continued to focus on delivering reliable services and solutions for its new and existing customers, growing revenues and improving operational performance and efficiency. The data centre and network restructuring programme has been successfully completed and, as a result, the Company will benefit from slightly increased annualised cost savings. The Company has also successfully launched a new enterprise resource planning ("ERP") system, replacing five legacy operational systems, which provides the Company with a single, scalable integrated platform yielding significant benefits in the future.

The Company's net debt at 30 September 2020, excluding leases previously classified as operating leases under IAS17, was £1.1m (31 March 2020: £13.5m) reflecting continuing strong cash collections and £4.2m of net cash benefit as a result of the equity placing to raise £5.8m (the "Placing") to part fund the restitution scheme announced on 26 June 2020. To date, the net proceeds of the Placing have exceeded the amount of restitution claims and advisory costs paid out. Whilst the Company initially took advantage of the government's Covid-19 VAT deferral scheme, this was repaid in full by 30 September 2020.

Total net debt as at 30 September 2020, including £15.9m of liabilities previously classified as operating leases under IAS17, is expected to be £17.0m (31 March 2020: £34.5m).

The Company continues to monitor government recommendations relating to COVID-19 in both the UK and India and is taking all safety precautions necessary to ensure the continued wellbeing of its customers and employees. The majority of employees continue to work remotely, and no employees have been furloughed to date.

The Company intends to announce its results for the half year ended 30 September 2020 on Thursday 17 November 2020.

Enquiries:

Redcentric plc     [phone] 

Peter Brotherton, Chief Executive Officer 

David Senior, Chief Financial Officer   

finnCap Ltd - Nomad and Broker                                                                    [phone]

Marc Milmo / Simon Hicks / Charlie Beeson (Corporate Finance)

Andrew Burdis / Sunila de Silva (ECM) 

 

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