REG - Redcentric PLC - Proposed Capital Reduction & Notice of GM

RedcentricAnnouncement

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RNS Number : 7419B  Redcentric PLC  24 April 2026

24 April 2026

 

Redcentric plc

('Redcentric', the 'Company' or the 'Group')

 

Proposed Capital Reduction

Publication of Circular and Notice of General Meeting

 

Redcentric plc (AIM: RCN), a leading UK IT managed services provider, is
pleased to announce its intention to undertake a capital reduction. The
proposed capital reduction will create additional capacity to deliver further
returns to shareholders while maintaining a strong balance sheet to support
the Group's ongoing growth strategy in the Managed Services sector.

 

The Company will today be posting to shareholders a circular (the 'Circular'),
regarding the proposed cancellation of the Company's share premium account
(the 'Capital Reduction') in order to create additional distributable reserves
for the Company.

 

The Circular contains a notice of general meeting of the Company's
shareholders (the 'Notice of General Meeting'), which is to be held at the
Company's registered office at Central House, Beckwith Knowle, Harrogate,
North Yorkshire HG3 1UG at 9.30 a.m. on 13 May 2026 at which a special
resolution will be proposed for shareholders to approve the proposed Capital
Reduction.

 

The Circular, together with the Notice of General Meeting, will also be
available to view today on the Company's website at www.redcentricplc.com
(http://www.redcentricplc.com) .

 

Background to and reasons for the proposed Capital Reduction

 

 On 23 October 2025, the Company announced that it had conditionally agreed the
 sale of its data centre business to Stellanor Datacenters Group Limited
 ('Stellanor') (the 'Disposal'). The Company and Stellanor are continuing to
 finalise the conditions to completion, and it is currently anticipated that
 the Disposal will complete on 30 April 2026.  The Board will update the
 market following completion on the use of proceeds.

 Following completion of the Disposal, the Group will focus on its successful
 MSP business, reduce the leverage on the Group's balance sheet, and return
 material proceeds to shareholders most likely by way of an equity tender
 offer.

 The Board currently anticipates that its ability to undertake an equity tender
 offer post completion of the Disposal will not be conditional on the Capital
 Reduction completing. Without the proposed Capital Reduction, the Company's
 ability to undertake further or additional returns of capital beyond such
 initial, shareholder approved, equity tender offer may be constrained by the
 post Disposal distributable reserves, estimated at £75 million.

 The purpose of the proposed Capital Reduction is, therefore, to create
 additional distributable reserves, thereby increasing the Company's capacity
 and flexibility to undertake increased or further returns of capital to
 shareholders.

 Although completion of the Disposal has not yet occurred, the Board considers
 it prudent to commence the Capital Reduction process now so that the Company
 is well placed to support future distributions to shareholders.

The Capital Reduction is conditional upon the passing by the Company's
shareholders of the special resolution set out in the Notice of General
Meeting, as well as the subsequent confirmation by the High Court of England
and Wales of the cancellation.

 

Expected timetable of principal events

 

 Event                                                                       Time and/or date((1)(2))
 Publication and posting of the Circular                                     24 April 2026
 Latest time for receipt of proxy appointments in respect of the General     9.30 a.m. on 11 May 2026
 Meeting
 General Meeting                                                             9.30 a.m. on 13 May 2026
 Results of General Meeting announced                                        by 6.00 p.m. on 13 May 2026
 Expected date for the Initial Court Hearing                                 week commencing 8 June 2026
 Expected date for the Final Court Hearing to confirm the Capital            week commencing 29 June 2026
 Reduction
 Expected date of registration of the Court Order and the Capital Reduction  week commencing 29 June 2026
 becoming effective

 

 Notes:
 1.           All of the times referred to in this announcement refer
 to London time.
 2.           Each of the times and dates in this timetable is
 subject to change (including at the discretion of the Court). If any of the
 expected times and/or dates change materially, the revised times and dates
 will be notified to Shareholders by an announcement through a Regulatory
 Information Service.

 

 

Further announcements in relation to the Capital Reduction will be made in due
course following the publication of the Circular, including the final
timetable for the Capital Reduction to become effective, once the Company has
further clarity on the requisite Court hearing dates.

 

Unless otherwise defined, capitalised terms shall have the same meaning as
those set out within the 'Definitions' section within the Circular.

 

- Ends -

 

Enquiries:

 

    Redcentric plc                                           via Burson Buchanan

    Michelle Senecal De Fonseca, CEO                         www.redcentricplc.com (http://www.redcentricplc.com/)

    Tony Ratcliffe, CFO
                                                             Tel: +44 (0) 20 7220 0500

    Cavendish Capital Markets Limited - Nomad and Broker

    Marc Milmo / Callum Davidson (Corporate Finance)

    Andrew Burdis / Sunila de Silva (ECM)

 

For media enquiries:

 

 Burson Buchanan - Financial Communications           Tel: +44 (0) 20 7466 5000

 Henry Harrison-Topham / Jamie Hooper / Toto Berger   redcentric@buchanancomms.co.uk (mailto:redcentric@buchanancomms.co.uk)

Notes to Editors:

 

Redcentric has a strong track record in delivering IT managed services
provision that empowers businesses to scale, innovate and grow in a rapidly
evolving digital landscape. As technology continues to advance the Company's
goal is to be the go-to-all-in-one infrastructure and managed IT service
provider for customers of all sizes offering an unmatched range of products
and solutions.

 

The Company's MSP division serves the private and public sectors with all
their IT requirements.  The MSP division acts as an outsourced IT department,
handling day to day maintenance and security of customers' IT infrastructures.
This allows customers to improve security and efficiency and focus on growing
their core businesses.

 

From infrastructure management and cloud services to cybersecurity and data
analytics, Redcentric has a comprehensive suite of solutions designed to meet
the diverse needs of modern businesses.

 

For additional information please visit www.redcentricplc.com
(https://eur03.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.redcentricplc.com%2F&data=05%7C02%7Cliz.wild%40redcentricplc.com%7C1c5448d1b4a14513a74008ddf4febfce%7C849ace2839514fbfb420bd63bc528ce9%7C0%7C0%7C638936097176014930%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=Lhu7bvBse2mdgtOfbpNmwzoD%2B%2FXNcpOvnChFVtdM9DM%3D&reserved=0)

 

 

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