Redcentric PLC – Preliminary Results Announcement FY19
Redcentric plc (AIM: RCN), a leading UK IT managed services provider, today announces its full year results for the year ended 31 March 2019.
Financial Highlights
- Revenue of £93.3m (FY18: £100.0m), including £81.0m (86%) of recurring revenue (FY18: £87.1m, 87%)
- Adjusted EBITDA of £16.7m (FY18: £18.1m) and adjusted EBITDA margin of 17.9% (FY18 18.1%)
- Adjusted basic EPS of 3.89p (FY18: 4.35p). Statutory EPS of (1.32)p (FY18: 0.34p)
- Adjusted cash flow from operations of £21.3m (FY18: £22.6m)
- Net debt reduction of £10.1m to £17.6m (FY18: £27.7m)
- Enhanced dividend policy announced with a cover of 2x adjusted earnings, doubling the pay-out ratio announced at the half year
- Final dividend of 1.0p per share resulting in a total dividend for the year of 1.4p
- The Board to request authority for a share buyback programme of up to 5% of the issued share capital at the upcoming AGM
Operational Highlights
- Strong conversion of HSCN opportunities in FY19 with £2.8m of contract value signed
- Annualised cost savings of £5m realised in the second half of the year
- Restructured Sales team providing focus to top line growth for FY20
- Investment in dedicated Delivery teams
- Peter Brotherton appointed as permanent CEO
- New CFO appointed to join the business in September 2019
There will be a presentation for analysts held at 09:30hrs on 25 June 2019 at the offices of Tulchan Communications, 85 Fleet Street, EC4 1AE. Please contact redcentric@tulchangroup.com if you would like to attend.
Peter Brotherton, CEO, commented:
“We have made organisational and structural changes to best position the business for the future whilst at the same time progressing through historical issues that the business has faced. The second half of the year has seen success in the public sector with total contracts signed to date of £17m. Additionally we have realised annualised cost savings of £5m. Our cash performance continues to be excellent and this, combined with our overall confidence in the future of the Group, has allowed us to announce an improved dividend policy and seek authority to commence a share buyback programme.”