Redcentric interim profit drops on acquisition costs
IT managed services provider Redcentric posted a drop in first half pre-tax profit as it booked one-off acquisition and integration costs from its purchase of of Calyx Managed Services.
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For the six months to the end of September, pre-tax profit came in at £1.39m from £3.85m in the first half of last year following the acquisition of Calyx in April.
Removing the costs from the deal, profit increased 22% to £5m on revenue of £54m, up from £46.8m.
The company declared an interim dividend of 1.5p, up 50% from the same period last year.
Chief executive officer Fraser Fisher said: "Redcentric has continued to perform well in the first half, with some very impressive contract wins, good sales momentum and the successful integration of Calyx.
“Our focus continues to be on growing our recurring revenue base by providing our customers with market leading services, allowing them to concentrate on their core business."
At 1250 GMT, Redcentric shares were down 6% at 184.98p.