Redcentric interim performance 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.