Redcentric interim performance in line with expectations

IT managed services provider Redcentric said on Wednesday that trading for the six months ended 30 September was projected to have been in line with expectations.

Redcentric expects to report interim revenues of £46.4m and adjusted underlying earnings of £12.0m, both broadly flat year-on-year.

The AIM-listed company also noted that it had minimal net debt of £400,000 at the end of the half, excluding supplier loans and leases previously classified as operating leases under IAS17.

Redcentric stated that its "strong position" reflected a final dividend payment of £3.7m, the disposal of its non-core EDF contract for £5.8m, and the acquisition of Piksel Industry Solutions for £9.5m.

Looking forward, Redcentric expects trading for the year ending 31 March 2022 to be in line with guidance despite a continued lack of largescale IT projects and supply chain issues.

In addition, several of the firm's electricity supply contracts fell due for renewal during the ongoing UK energy crisis, adding £500,000 in costs to the second half of the trading year and at least £500,000 to the first half of the coming year.

As of 1035 BST, Redcentric shares were down 2.48% at 128.0p.