News Column

Redcentric Proposes Maiden Dividend And Provides Confident Outlook

June 16, 2014

Hana Stewart-Smith

LONDON (Alliance News) - Redcentric PLC Monday announced its maiden dividend for the year to end-March and gave a confident outlook for its future, in its first set of full-year results since its de-merger from Redstone PLC and subsequent listing on AIM in April 2013.

The IT services provider proposed a maiden dividend of 1.0 pence per share, and said it intends to adopt a progressive dividend policy to grow its dividend going forward. Redcentric said it plans to pay an interim and a final dividend go forward.

The company posted a pretax loss of GBP2.6 million, on revenue of GBP58.3 million, boosted by its acquisition of inTechnology Managed Services Ltd via a reverse takeover for GBP64.3 million last December.

No comparative results were provided, as there was no trading activities in Redcentric prior to the demerger.

It posted transaction and integration costs of GBP5.5 million for the year as a result of the demerger and its acquisition of InTechnology. Redcentric said the integration of the acquisition was on track, and the cost synergies of GBP3.0 million it had identified are being delivered.

Revenue was ahead of the company's expectations at the time of its acquisition of InTechnology, it said. 71% of its revenue was recurring, which it said gave it confidence in its underlying financial strength.

Since its admission to AIM, Redcentric has won a number of new contracts with existing and new customers, and it noted that its sales pipeline was strong. As the company has continued to integrate InTechnology, it has secured new contracts cross-selling across its enlarged customer base, it said.

It will focus on developing its business organically. However it noted that it would consider further acquisitions if they were financially and strategically attractive.

"Whilst there will inevitably be challenges along the way, the board has great confidence in the future of the business and looks forward to increasing value for shareholders over the years ahead," said Non-Executive Chairman Richard Ramsay in a statement.

Shares in Redcentric were trading down 1.4% at 116.33 pence Monday morning.

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Source: Alliance News

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