Redcentric Plc · LSE:RCN
Redcentric — H1 FY2022 Earnings Presentation
18 slides from Redcentric's earnings presentation, November 2021
Slide 1: Redcentric - Agile, Available, Assured
i) redcentric EO) AGILE * AVAILABLE * ASSURED
Slide 2: Agenda
Agenda Introductions Operational review redcentric 2
Slide 3: Operational review: Six months ended 30 September 2021
Public Operational review Six months ended 30 September 2021 Peter Brotherton — Chief Executive Officer redcentric AGILE © AVAILABLE » ASSURED
Slide 4: Introduction, trading context and underlying performance
Introduction, trading context and underlying performance Pre Covid During Covid H1FY20 H2FY20 HIFY21 H2FY21 H1FY22 Revenue - Recurring 38.3 383 40.5 40.4 39.6 - Non-recurring 44 55 5.2 4.3 47 427 13.8 457 a7 4.3 Recurring Revenue% 89.8% 87.4% 88.6% 904% 89.4% Adjusted EBITDA 9.9 10.0 11.9 12.0 11.9
Slide 5: Acquisition of Piksel Industry Solutions
Acquisition of Piksel Industry Solutions Enhancing cloud capability Extensive public cloud experience across AWS and Microsoft Azure Transformed cloud offering with complete end-to-end digital transformation capability enabling a customer's journey from colocation to hyperscale cloud Complementary c
Slide 6: Digital transformation and service provider evolution
Digital transformation and service provider evolution Colocation Managed Hosting Private Cloud Hyperscale Analytics & Al Analytics & Al Analytics & Al Analytics & Al Applications Applications Applications Web Platform Web Platform Web Platform redcentric Web Platform Databases Databases Databases AG
Slide 7: Piksel Industry Solutions - Integration progress
Piksel Industry Solutions - Integration progress Integration ahead of plan with £0.7m of savings already actioned and on £1.1m of total savings Organisational + Planning for a new cloud services division is complete with management positions currently being filled. + Preparation for employee TUPE di
Slide 8: Operational highlights — efficiencies and investments
Public Operational highlights — efficiencies and investments Continued improvement in systems and platforms to facili re growth, improve customer service and enable efficient integration of acquisiti The first stage of the new HR system is now live and when fully implemented will replace five legacy
Slide 9: Growth Strategy
Growth Strategy Organic Inorganic The acquisition of Piksel significantly enhances our Cloud services practice: * One of the highest growth areas of the IT services market is now fully open for us to exploit. * We now have a complete range of cloud service offerings, from pure Colocation through to
Slide 10: Financials | half year ended 30 September 2021 (HY-22)
Public Financials | half year ended 30 September 2021 (HY-22) David Senior – Chief Financial Officer
Slide 11: Revenue, operating costs and Adjusted EBITDA
Public Revenue Operating costs Adjusted EBITDA Adjusted EBITDA less capex £50m £20m £20m 30% £15m 30% £45.7m £44.7m 27.3% £43.8m £44.3m 26.5% 26.8% 28% 23.0% £45m 21.7% 22.0% 25% £18m £12m £46.2m £15m £45.2m 26% 18.6% £44.3m £44.3m £40m 20% 23.2% £17.0m £17.0m £16m £9m £10.4m 24% £10.0m £9.8m £16.4m
Slide 12: Normalised net debt movement, net debt and adjusted EPS
Public Normalised net debt movement Net debt Trade debtors Adjusted basic EPS £12m £35m 4.00p £34.5m £30m 3.50p £10m 3.62p 3.61p £10.7m 3.55p £10.0m 3.00p £25m £8m 2.50p £20m 2.35p £7.1m £6m 2.00p £6.1m £15m £17.0m 1.50p £15.6m £15.4m £4m £10m 1.00p £2m Current 1-30 days overdue £5m 0.50p 31-60 days
Slide 13: Group income statement
Group income statement Revenue 44.3 45.2 46.2 Cost of sales (16.7) (15.9) (17.6) 5% Gross Profit 21.6 29.3 28.7 A% Gross Margin 62.4% 64.9% 62.0% Operating Costs (15.7) (17.0) (16.4) 4% Adjusted EBITDA 1.9 12.3 123 -3% EBITDA Margin 26.8% 27.3% 26.5% Depreiatin of property, plant and 26 7 28) 5% Amo
Slide 14: Adjusted net debt and cash flow
rr ee Adjusted 1 net debt Adjusted EBITDA ng 123 Working Capital movements (1.9) 12 07 Cash Generated from operations 10.0 13.5 129 Capital expenditure — cash purchases (2.1) (1.7) (1.2) Capital expenditure —finance lease purchases (1.3) (1.0) Proceeds from sale and leaseback off assets 1.0 : Capita
Slide 15: H1-22 H2-21 H1-21
H1-22 H2-21 H1-21 £'m £'m £'m • • • • 15
Slide 16: Dividend policy
Dividend policy * The Board has reviewed the financial performance The following dates are proposed: of the business and has decided to maintain an a interim dividend payment of 1.2p per share. Ex-dividend date - 25 November 2021 * The continuation of dividend payments whilst Record date - 26 Novemb
Slide 17: Summary & outlook
Public Summary & outlook Peter Brotherton – Chief Executive Officer
Slide 18: Summary and outlook
Summary and outlook Summary The business continues to perform well and is trading significantly ahead of the pre-covid period. The strategically important acquisition of Piksel completes our cloud services offering and gives full access to the highest growing areas of the market. The integration of