RedstoneConnect 'trading well' in first half

The AIM-traded company said it has seen continued progress against the board's strategic objectives in the period, with robust levels of new business enquiries from both new and existing customers for a combination of IT networking projects and the company's newer smart building software solutions.

It described the progress as “further evidence of the evolving dynamics” of the RedstoneConnect financial model, as management focus on building the company's recurring revenue base whilst growing margins.

In the first six months of the current financial year, the company continued to develop its suite of software solutions for smart buildings and commercial spaces with the expectation that those will provide it with an increased flow of annuity based revenues in the future.

This broadening of the company's focus from project-based contracts to annuity, software licence and higher margin services was evidenced in new contracts in the first half of the year, which included a £12m services contract extension with one of the world's leading financial institutions.

It also included a three-year framework contract extension with UBS for the global roll-out of OneSpace, following the successful deployment of the application in London, and a contract extension with GlaxoSmithKline to roll-out the company's Site Map and wayfinding application at its Asian headquarters in Singapore.

It also saw the award of a contract to Connect IB and Redstone during the period for the implementation of the company's smart technology software at a major UK shopping centre utilising both smartphone and beacon technology to deliver a host of services.

“We are pleased with the strong first half of trading, having secured a number of new business mandates allowing us to broaden our revenue base to include recurring project, licence and higher margin services business,” said CEO Mark Braund.

“The strong momentum in the first six months of the year has continued into the second half and management is confident in the company's prospects for the full year.”

Braund said the heavy lifting associated with its restructuring is now complete leaving the business leaner, fitter and ready to capitalise on a number of significant opportunities.

“The commercial deployment of our software products alongside our recent success of interconnecting our smart solutions with our traditional IT services is testament to both the quality of our people and solutions, as well as demonstrating the successful implementation of our strategy,” he explained.

“We continue to trade well, buoyed by the ongoing demand from customers to deploy our services and solutions to reap the commercial and operational benefits our technologies provide.”