Slide 1: Full Year Results
Full Year Results Year ended 31 March 2020
Slide 2: Disclaimer
Disclaimer IMPORTANT NOTICE This document contains statements that are, or may be deemed to be, “forward-looking statements” which are prospective in nature. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Forward-looking state
Slide 3: Contents
Contents Headlines Financials Operational Review & COVID-19 update Summary and Outlook Appendices Impact of IFRS 16 on financial statements Redcentric at a glance 3
Slide 4: Headlines
Headlines Financial Review of FY20 Outlook • Revenue of £87.5m (FY19: £93.3m). • Return to recurring revenue growth. • The full effect of the integration and efficiency initiatives along with revenue • Adjusted EBITDA of £17.6m (FY19: • Significant progress in public sector. growth will lead to high
Slide 5: Financials Year Ended March 2020 (FY20)
Financials Year Ended 31 March 2020 (FY20) David Senior – Chief Financial Officer Note: • IFRS16 has been adopted in the FY20 statutory accounts, with the prior year comparative numbers remaining on a pre IFRS16 basis. • To enable direct comparison, the numbers in this presentation are all on a like
Slide 6: FY20 financial performance
FY20 financial performance 6
Slide 7: Group income statement
Group income statement % Change (0005) (1000) % Revenue 87.485 93,260 6.2% Cost of Sales (22,297) (26,895) (12.5)% Grose Profit 55,188 56,365 2.19% Gross profit decr comet ve ox on due to the higher p Operating Costs (27421) (39,651) 1% operational efficiencie: Adjusted EBITDA. 17,567 16,714 51% EBI
Slide 8: Adjusted net debt
Adjusted net debt ‘% Change Net debt reduction of £4.1m has been achieve (000s) (0003) % capital items, £0.8m on exceptional items and p and share buybacks. Adjusted EBITDA 17,567 16714 51% Working Capital movements (1.115) 4575 (124.4% Cash Generated from operations 16452 21,289 22.1% i a Operating
Slide 9: Dividend policy & share buyback
Dividend policy & share buyback Dividend Share buyback Dividends paid Share buyback During the year, the Company paid the following dividends: • As part of the buyback programme, 822,427 shares were purchased at a weighted average price of 88p per share. • a final dividend for the year ended 31 Marc
Slide 10: Operational Review
Operational Review Peter Brotherton – Chief Executive Officer
Slide 11: Revenue growth
Revenue growth Return to recurring revenue growth Increase public sector presence • Excluding contracts lost to Crown Hosting, the business • Success in the Health and Social Care Network (HSCN) has seen four consecutive quarters of recurring revenue procurement process and good performance in rolli
Slide 12: Operational efficiencies & upgrades
Operational efficiencies & upgrades Operational efficiencies Upgrade our network and platforms • Rationalisation and integration of historical physical • Core network upgraded from a 10Gb to 100Gb capacity at a cost of networks. £1.5m. • Rationalisation of third-party data centres. • IaaS platform u
Slide 13: FCA settlement & restitution scheme
FCA settlement & restitution scheme Bringing the FCA investigation to a conclusion • As part of the settlement reached with the FCA, a restitution scheme has been implemented in order to compensate net purchasers of ordinary shares in the Company between 9 November 2015 and 6 November 2016. • Total
Slide 14: Covid-19 pandemic
Covid 19 Covid-19 pandemic • We responded quickly to the pandemic with the majority of staff working from home from 17 March 2020. • No incidents so far, with all staff and IT systems working well and excellent customer service maintained. • All key busines metrics (order intake, deliveries and cash
Slide 15: Outlook & summary
Outlook & summary redcentric AGILE * AVAILABLE * ASSURED
Slide 16: Outlook and Summary
Outlook and Summary • Return to recurring revenue growth, following three years of decline. • Profit margins are increasing and we are currently achieving EBITDA margins in excess of 25%. Summary • Continued excellent cash conversion. • Investment in network and platform upgrades largely complete .
Slide 17: Appendices
Appendices redcentric AGILE * AVAILABLE * ASSURED
Slide 18: Impact of IFRS16 on financial statements
Impact of IFRS16 on financial statements
Slide 19: IFRS impact on financial statements
IFRS 16 impact on financial statements Group income statement Adjusted net debt 19
Slide 20: IFRS impact on financial statements
IFRS 16 impact on financial statements Consolidated statement of financial position 20
Slide 21: Redcentric at a glance
Redcentric at a glance redcentric AGILE * AVAILABLE * ASSURED
Slide 22: Our solutions
Our solutions Networks that connect and secure customers’ Computer processing and storage capacity sites to Redcentric and others’ data centres, rented to customers and managed on hyper cloud providers and the internet Redcentric or others’ facilities • Connectivity • Infrastructure as • Disaster Re
Slide 23: Assured Availability
Assured Availability Delivering highly available infrastructure that organisations can rely on to improve productivity and performance Organisational Agility Helping organisations to address operational, financial and regulatory challenges at speed redcentric Smarter Working Enabling and empowering