Services outfit Redcentric has issued an upbeat trading update promising shareholders a dividend for its freshman year as the integration of inTechnlogy progresses nicely.
The firm, which was formed from a spin-out of Redstone's services business a year ago, issued a statement to the markets today outlining that it expects its results for the year to 31 March to be "comfortably in line with market expectations".
The second half of the year brought "sustained improvements in operating cashflow" compared with the first half. As of today, net debt stands at about £12.5m, a figure which "is expected to reduce significantly during 2014".
In November Redcentric announced the £65m cash buyout of inTechnology, a move which it claimed doubled its pro forma revenue to about £84m. Today's update indicates that "the integration of the two businesses is progressing as planned", with a group operating board set up for sales, operations, and finance functions.
The unification programme "will continue through FY2015" with accounting and billing expected to be successfully brought together during the year's first half.
The buyout is already reaping rewards, claimed Redcentric, which reiterated its intent to declare a dividend when its final results are published on 16 June, "marking the start of a progressive dividend policy".
Today's statement concludes: "The acquisition of inTechnology is delivering the benefits that we expected. An encouraging pipeline and recent contract wins underpin organic growth which, allied to a very strong base of contracted revenues, puts the group in a solid position to continue to deliver attractive shareholder returns."
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