UK's Redcentric FY26 adjusted net debt reduces after data centre sale
UK's Redcentric FY26 adjusted net debt reduces after data centre sale
Overview
UK IT managed services provider's FY26 MSP revenue declined slightly, recurring revenue held at 88%
Adjusted EBITDA for FY26 MSP business exceeded company-compiled market expectations, driven by cost discipline
Company reduced adjusted net debt and strengthened cash position after data centre sale
Outlook
Company expects accelerated revenue growth and improved earnings from H2 FY27 and beyond
Redcentric says recurring revenue model and improved cash conversion support medium to long-term outlook
Result Drivers
COST DISCIPLINE - Redcentric said exceeding adjusted EBITDA company-compiled market expectations reflected continued effective cost management and operational execution
STRATEGIC INVESTMENTS - Co said it made strategic investments in H2 FY26 aimed at accelerating revenue growth and improving earnings from H2 FY27
Company press release: ID:nRSA3492Ga
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Adjusted Net Debt |
| GBP 36.8 mln |
|
Analyst Coverage
Wall Street's median 12-month price target for Redcentric PLC is GBp190.00, about 52% above its May 29 closing price of GBp125.00
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 25 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)