Business
Trading Statement
Trading Statement.
About this update from Redcentric Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 3977U\n Redcentric PLC\n 06 April 2021\n \n \n \n \n Redcentric plc\n \n \n (\"Redcentric\" or the \"Company\")\n \n \n Trading update and sale of non-core business unit \n \n \n Redcentric plc (AIM: RCN), a leading UK IT managed services provider, today announces a trading update for the year ended 31 March 2021 and the sale of a non-core business unit.\n \n \n Trading update \n \n \n The Company's performance throughout the year ended 31 March 2021 has been excellent with revenues growing, healthy profitability and exceptional cash flows. Our strong recurring revenues, resilient business model and diverse customer base have enabled us to not only weather the Covid-19 storm but also flourish in these difficult times.\n \n \n Revenue and adjusted EBITDA for the financial year ended 31 March 2021 are expected to be in line with the board's expectations, with net debt of approximately £15.6m (including £16.5m of IFRS-16 liabilities & supplier loans) being better than the board's expectations. \n \n \n Revenues and trading\n \n \n Working collaboratively with our customers, we were able to quickly develop and deploy solutions that helped customers to securely navigate remote working requirements. Despite customers continuing to defer decisions on large scale IT projects, the Company has continued the strong progression reported at the half year and is pleased to report continued growth in revenues.\n \n \n Operational \n \n \n As previously communicated, the data centre and network restructuring programme was successfully completed in June 2020, achieving annualised costs savings of £4.0m, significantly more than the £2.8m originally announced.\n \n \n On 5 October 2020, the finance and operations modules of our new ERP system went live, adding to the sales module that was launched during the previous financial year. This system replaces five legacy systems and will ensure that there is consistent and more accurate data across the organisation. We are seeing significant benefits from the implementation of this system, from both an improved management information and a cash collection perspective, the latter due to improved billing accuracy and a reduction in time taken to issue sales invoices. Refinements to the system and the processes that surround it are ongoing and we expect to see furth...