REG - Redcentric PLC - Trading Update & CEO Appointment

RedcentricAnnouncement

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RNS Number : 5637H  Redcentric PLC  07 May 2025

7 May 2025

 

Redcentric plc

('Redcentric' or the 'Company')

 

Pre-Close Trading Update

 

Appointment of CEO

 

'Progress made across key financial metrics in FY25'

 

Redcentric plc (AIM:RCN), a leading UK IT managed services provider, announces
a pre-close trading update for the financial year ended 31 March 2025 ('FY25'
or the 'year') and the appointment of Michelle Senecal de Fonseca as the
Company's new Chief Executive Officer, ('CEO').

 

FY25 Financial Highlights (unaudited)

                      FY25           FY24               %

                      (£ million)    (£ million)        Change
 Revenue              170.0          163.1              +4.2%
 Recurring Revenue    155.1          149.1              +4.0%
 Recurring Revenue %  91.2%          91.4%              -0.2%
 Adjusted EBITDA*     37.0           28.3               +30.7%
 Adjusted Net Debt    41.8           42.0               -0.5%

 

*Adjusted EBITDA is EBITDA excluding exceptional items, share-based payments,
and associated National Insurance.

 

Summary

 

These results highlight the ongoing benefits of the Company's acquisition
strategy and the positive impact of enhanced operational efficiencies.
 During FY25, the Company successfully completed the migration of the data
centres business, a key milestone in Redcentric's transformation strategy.
Segmental financial reporting will be introduced alongside the release of
audited financial statements in August 2025.

 

The separation of the Company's two core business entities, Data Centres
('DC') and Managed Services Provision ('MSP'), presented operational and
accounting complexities.  While these challenges required considerable
management focus, it was essential to establish two distinct and
well-structured business units for the future and this initiative has been
successfully concluded.

 

Adjusted net debt remained stable and showed a slight improvement compared to
FY24, despite adverse year-end working capital movements and dividend payments
of £5.7 million to shareholders during FY25.

 

FY25 Operational Highlights

 

·      Recurring revenue: Recurring revenue grew 4% to £155.1 million,
comprising 91.2% of the Group's total revenue, reinforcing Redcentric's
resilient revenue base and high-quality offering.

 

·   Cost savings: Completed integration programmes from prior acquisitions
delivering annualised cost savings, as previously announced.  Electricity
conservation measures and lower commodity prices from April 2024 coupled with
effective electricity cost management will yield further volume savings in
future years.

 

·     VMWare: Following VMware's acquisition by Broadcom, Redcentric was
appointed as one of only seven strategic partners in the UK.  Customer
engagement has been positive, and operational improvements have enhanced cost
efficiency during the period.

 

·    Capital expenditure: The Company continued to invest during FY25,
capital expenditure of £11.5 million, effectively allocated to infrastructure
security enhancements, systems development, and client-related contract
investments.  This was marginally below market expectations owing to the
non-materialisation of a planned colocation deal and associated
client-specific investment.

 

·     Financial: The Company maintained its dividend at 3.6 pence per
share, amounting to £5.7 million, and expects to continue this policy into
FY26.

 

 

CEO Appointment

 

The Company is also pleased to announce the appointment of Michelle Senecal De
Fonseca as CEO to the Company with immediate effect. Michelle has been a
Non-Executive Director of the Company since February 2024 and is an
experienced executive in the technology industry. She was previously Managing
Director for Vodafone's Cloud and Hosting Services business, and served as
area Vice President for Sales and Services for Northern Europe at Citrix
Systems before becoming its Global Vice President for Strategic Alliances.

 

Michelle also currently serves as a Non-Executive Director on the boards of
Alphawave IP Group PLC, GBG plc, ASU Global Foundation UK Limited and Women in
Telecoms & Technology (WiTT) Limited.

 

The Board would like to extend its gratitude to Peter Brotherton for his
leadership and invaluable contributions to the Company's growth and success.
 Peter has been instrumental in leading the Company's growth as a leading IT
managed service provider and in establishing a highly successful UK data
centre operation.  As previously announced, Peter has agreed to remain
available to the business in a strategic advisory capacity.

 

Richard McGuire, Chairman of Redcentric, said: "FY25 was a transformative year
for the Company, a year in which it delivered significant revenue and EBITDA
growth predominantly driven by prior strategic acquisitions and operational
excellence. The entire Redcentric team successfully delivered the separation
of our MSP and DC divisions, and Management's resilience and focus on cost
efficiency have positioned the Company for continued success.

 

"Whilst the Board joins me in welcoming Michelle to her new role as CEO, they
would also like to thank Peter for his strong leadership to date and we are
pleased that he will remain with the Company for a period of time as a
strategic advisor and support a seamless transition of CEO duties.  I look
forward to working with Michelle who has significant sector experience.  In
FY26, our aim is to build on the strong foundations laid during the year, to
accelerate organic growth, streamline operations, and enhance returns for our
shareholders."

 

Commenting on her appointment as CEO, Michelle Senecal De Fonseca, said: "I am
honoured to be appointed to the role of CEO.  My vision is to elevate our
commitment to delivering unparalleled value to our clients by enhancing our
service offerings, embracing cutting-edge technologies, and fostering a
culture of innovation and collaboration. I am dedicated to empowering our
talented team to drive operational excellence, strengthen client partnerships,
and position Redcentric as the trusted partner for businesses navigating the
complexities of the digital landscape. Together, we will shape a future where
our clients thrive through transformative, reliable, and forward-thinking
managed services."

 

- Ends -

 

The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018. The information is
disclosed in accordance with the Company's obligations under Article 17 of the
UK MAR. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.

 

For further information:

 

 Redcentric plc                                                 Tel: +44 (0) 800 983 2522

 Richard McGuire, Chairman                                      www.redcentricplc.com (http://www.redcentricplc.com)

 Michelle Senecal De Fonseca, CEO

 Cavendish Capital Markets Limited - Nomad and Broker           Tel: +44 (0) 20 7220 0500

 Marc Milmo / Callum Davidson / Rory Sale (Corporate Finance)

 Andrew Burdis / Sunila de Silva (ECM)

 

For media enquiries:

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

 Henry Harrison-Topham / Jamie Hooper   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.  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.

 

The Company operates through two distinct divisions:

 

Managed Services Provider ('MSP'): Servicing 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.

 

Data Centres ('DC'): Portfolio of eight well invested data centres with 41MW
of available capacity strategically located across the UK from London to West
Yorkshire. DC serves a diverse blue chip customer base, providing critical
services to Enterprise-grade clients and Government entities reliant on secure
data centres and uninterrupted connectivity.

 

For additional information please visit www.redcentricplc.com
(http://www.redcentricplc.com)

 

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