UK's Redcentric H1 revenue falls on customer cancellations
UK's Redcentric H1 revenue falls on customer cancellations
Overview
UK IT managed services firm's H1 revenue fell yr/yr, reflecting customer cancellations and business mix shift
H1 adjusted EBITDA flat yr/yr, with improved margin from higher-margin business and expense control
Company reported higher gross margin for the period
Outlook
Redcentric expects FY27 adj EBITDA of £18.4 mln, in line with market expectations
Company to focus on expanding recurring margin and disciplined cost management
Company anticipates resumption of interim dividend with H1 results
Result Drivers
BUSINESS MIX - Co said revenue decline reflected customer cancellations and shift toward higher-margin business
EXPENSE CONTROL - Co said tight expense control contributed to improved adjusted EBITDA margin
Company press release: ID:nRSa5116Aa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| GBP 63.70 mln |
|
Analyst Coverage
Wall Street's median 12-month price target for Redcentric PLC is GBp150.00, about 75.4% above its October 26 closing price of GBp85.50
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 20 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.)