REG - Redcentric PLC - Trading Update

RedcentricAnnouncement

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RNS Number : 3492G  Redcentric PLC  01 June 2026

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.

 

1 June 2026

 

 

Redcentric plc

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

 

Year to 31 March 2026 Trading Update

 

Solid MSP performance, delivering adjusted EBITDA(1) above expectations

 

Redcentric plc (LSE: RCN), a leading UK IT managed services provider ('MSP'),
is pleased to provide the following trading update for the year ended 31 March
2026 ('FY26').

 

Revenues(1) for the MSP business for FY26 totalled c.£132.1 million (FY25:
£135.1 million). Recurring revenues remained high at c.88%, underpinning
excellent earnings visibility.   Gross profit(1) margin was c.61.0% (FY25:
61.6%).

 

Adjusted EBITDA(1+2) for the MSP business for FY26 totalled c.£17.5 million,
ahead of FY26 market expectations of £17.2 million. This performance reflects
strong traction in the second half and continued effective cost discipline.
The second half also saw the Company implement certain strategic investments
designed to drive accelerated revenue growth and improved earnings from H2
FY27 and beyond.

 

Whilst the sector remains highly competitive, as noted in the interim results,
the Company remains focused on securing and maintaining long-term higher
margin business with continued tight cost control, to ultimately drive higher
quality of earnings.

 

Strong Financial Position

Group adjusted net debt(3) as at 31 March 2026 reduced to c.£36.8 million
(FY25: £41.9 million), demonstrating solid operating cash generation by the
Group, also ahead of expectation.

 

Following the disposal of the data centre business to Stellanor Datacenters
Group Limited on 30 April 2026 and the associated initial cash receipt of
£115.4 million, the Group's cash position (net of borrowings, excluding IFRS
lease liabilities) strengthened significantly and as at 29 May 2026 the
Group's net cash position was £77.9 million.

 

The robust performance in FY26 highlights Redcentric's market-leading position
in UK managed IT services.  The Board remains focused on expanding
high-quality recurring margin streams while maintaining disciplined cost
management to deliver sustainable value for shareholders.  The recurring
revenue model, lower capex requirements of MSP and improved cash conversion
provide the Board with confidence in the medium to long term outlook of the
business.

 

For the avoidance of doubt, the revenues, gross margin and earnings above
exclude the results of the data centre business, which, under IFRS, have
continued to be shown as a discontinued operation in the financial statements
throughout FY26, prior to the sale of the business on 30 April 2026.

 

The Company will announce the date of release of its Final Results for the
year ended 31 March 2026 in due course.

 

Michelle Senecal de Fonseca, CEO, commented: "I am pleased to report that we
have delivered Adjusted EBITDA ahead of expectations. This reflects strong
operational execution, disciplined cost management, and the successful
delivery of our strategic priorities. With a significantly strengthened
balance sheet following the data centre disposal, we are well positioned to
accelerate growth and deliver sustainable value for shareholders in FY27 and
beyond."

 

(1) All financial data for FY26 is draft and unaudited

(2) Adjusted EBITDA comprises earnings before interest, tax, depreciation and
amortisation ('EBITDA') further adjusted for exceptional items and share based
payments including National Insurance.

(3) Adjusted net debt is reported net debt (i.e. total borrowings net of cash)
less supplier loans and lease liabilities that would have been classified as
operating leases under IAS17. This is based on the full Group combining both
continuing MSP and discontinued data centre operations.

 

- Ends -

 

For further information:

 

 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
(http://www.redcentricplc.com)

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