Slide 1: Redcentric – Agile, Available, Assured
Confidential redcentric AGILE * AVAILABLE * ASSURED 20-4
Slide 2: Agenda
Agenda Introductions Summary & outlook redcentric ;
Slide 3: Financial review
Financial review David Senior — Chief Financial Officer redcentric
Slide 4: Financial performance — revenue and profitability
Financial performance — revenue and profitability less maintenance capex £163.2m (+15%) £89.7m (+17%) £28.3m (+16%) £24.2m (+13%) Recurring revenue of £149.1m Operating cost increase largely Adjusted EBITDA margin of 17% Maintenance Capex increased to (+16%) equivalent to 91% of total reflects full
Slide 5: Financial performance - liquidity & earnings
Financial performance - liquidity & earnings Normalised net cash / (debt) Net bank debt Trade debtors movement er share £13.6m (+1%) £42.0m (+18%) £18.2m (-10%) 1.99p (-25%) Consistent year on year Increase of £6.4m reflecting cash Excellent trade debt profile with Reduction in adjusted EPS movement
Slide 6: Group Income Statement
Group Income Statement * Total revenue was £163.2m (FY23: £141.7m) with recurring revenue of £149.1m (FY23: £128.5m), the proportion of recurring revenue is ahead of Revenue 141.7 163.2 15% prior period at 91.4% (FY23: 90.7%). Cost of sales (40.8) (45.1) 11% * Gross profit reflects revenue performan
Slide 7: Net Debt
Net Debt Movement Adjusted EBITDA 16% Working capital 01 (108%) Profit on disposal of FA (0.1) Cash movement on provisions (1.9) Cash generated from operations 234 27.4 19% Capital expenditure (5.4) (8.3) 54% Corporation tax (0.7) (0.2) (74%) Interest paid on RCF & term loans (1.8) (3.6) 86% Finance
Slide 8: Balance Sheet
Balance Sheet Summary balance sheet Net debt analysis The net asset position has reduced compared to the prior period, + Adjusted net debt of £42.0m as at 31 March 2024 (FY23: £35.6m). predominantly due to reduction in intangible and ROU assets. + Main year on year movements reflect: - Finance lease
Slide 9: Net debt footnotes
• • • • • 9 * Includes - Working capital, term loan repayments, operating lease payment timing adj.,corporation tax ,non-acquisition exceptional costs •
Slide 10: Dividend policy and share buyback
Dividend policy and share buyback A final dividend of 2.4p per share is recommended by the Board, resulting in total dividend for FY24 of 3.6p per share (FY23: 3.6p per share). In the medium term the Board intends to maintain a fixed dividend of 3.6p (interim 1.2p/final 2.4p) and continue with selec
Slide 11: Operational review and strategy update
Operational review and strategy update Peter Brotherton — Chief Executive Officer redcentric
Slide 12: FY24 operational review
FY24 operational review Significant progress made in delivering revenue and profitability growth. Organic growth Integration of acquired businesses Electricity conservation measures On a like for like basis and excluding structural issues (losses from the closure of Harrogate data centre and the los
Slide 13: Strategy update
Strategy update Strategy: To generate improved profitability and cash generation by growing both organically and inorganically, whilst continuing to deliver excellent customer service and providing one of the broadest and best product portfolios in the market. Inorganic growth Operational efficiency
Slide 14: AI high density deployments
Al high density deployments Develop channel route to market strategy for colocation sales, targeting enterprise clients and leveraging emerging Al demand to maximise data centre capacity. Our London West and West Yorkshire have the required and available facilities infrastructure, space, power to id
Slide 15: Inorganic growth - the acquisition story so far
Inorganic growth - the acquisition story so far Highly accretive acquisitions have added both capability and scale and provided a platform for organic growth. Significantly enhanced service capability Transformational scale acquisitions During FY22, two capability acquisitions (Piksel and 7 Elements
Slide 16: Inorganic growth — strong track record
Inorganic growth — strong track record Our track record in integrating businesses and extracting very significant synergies provides a demonstrable template for future acquisitions. quity / EBITDA valuation FY20, FY24 Adj A Acquired entity - Piksel Industry Solutions 87 Revenue £'m 87.5 163.2 87% -7
Slide 17: Acquisition strategy — the current plan
Acquisition strategy — the current plan * The current plan is to complete one acquisition per year for the next four years: * The typical size would be c.£3m - £5m acquired EBITDA with c.£3m - £5m of synergies to be realised at a cost of £0.75 per £1 saved. * Leverage levels not to exceed 2x company
Slide 18: Efficient operating model — leveraging the fixed cost base
Efficient operating model — leveraging the fixed cost base Core to our strategy is operating our own networks, data centres and platforms as this enables us to have full control over the customer experience. Our infrastructure is highly available, resilient, assured and is scalable, providing signif
Slide 19: Operational review — split out of data centre business
Operational review — split out of data centre business The Board does not feel that the data centre part of the business is being fully valued by the investment community and is conscious that it is not sufficiently visible to investors. Consequently, the board has taken the decision to split the ex
Slide 20: Summary & outlook
Summary & outlook Peter Brotherton — Chief Executive Officer redcentric PUBLIC
Slide 21: Summary and outlook
Summary and outlook Summary Integration of acquired businesses is largely complete with over £22m of costs removed from the acquired businesses. Good progress made with energy efficiency measures and this, along with a return to a more normalised energy market, will lead to a predicted c.£8.1m reduc
Slide 22: CONFIDENTIAL
CONFIDENTIAL ✓ • • • • ✓ • • ✓ • • • ✓ • • • ✓ • • 22
Slide 23: Financial guidance and trends
Financial guidance and trends Organic revenue growth Maintenance capex expected to be Small deficit expected The Board intends to target of 5% pa with ed tin pe cima ei tsig) aia) reflecting organic growth. continue with the same level operational leverage investment in networks, data centres of div
Slide 24: ESG - our responsibility
ESG - our responsibility We are committed to being a socially, economically, and environmentally responsible business. This is reflected in our actions and our corporate policies. Continuously evolving our national corporate social responsibility strategy to support key customers in their local area
Slide 25: Thank you
PUBLIC Thank you redcentric