Redcentric is celebrating sales that were "comfortably ahead" of its expectations in its first ever annual results.
Revenue for the 12-month trading period to 31 March stood at £58.3m, and the firm claims pro forma sales were £87.4m. Adjusted EBITDA was £10.5m, rising to £16.2m on a pro forma basis. The London-listed company posted a £2.2m operating loss, but made good on its pledge to give shareholders a dividend, paying out 1p per share.
Today's statement to the market added: "Going forward, the company intends to adopt a progressive dividend policy and, whilst considering the financial requirements of the group, intends to grow the dividend to provide attractive cash returns to shareholders."
Redcentric came into being last year when it demerged from Redstone to create a separate brand and publicly quoted trading entity. The company more than doubled in size with its November 2013 acquisition of InTechnology Managed Services (IMS). At the time of the buyout Redcentric claimed the deal took its run-rate revenue to £84m.
Today's results announcement states that the top line of £58.3m "was comfortably ahead of management expectations at the time of the IMS acquisition". Redcentric indicated that 83 per cent of its top line in FY14 came from services, with 71 per cent classed as recurring revenue.
The firm claims to have made a solid start to the new year, with £10m of new contracts won already. The plan from now on is to focus on organic growth, but further consolidation will be considered.
"Our focus is on continuing to develop our business organically; however the fragmented nature of our market presents opportunities for acquisitions, which we would consider if financially and strategically attractive," explains today's statement. "Whilst there will inevitably be challenges along the way, the board has great confidence in the future of the business and looks forward to increasing value for shareholders over the years ahead."
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