RedstoneConnect's shares rose sharply this morning after it revealed that its fiscal 2017 numbers will be ahead of market expectations.
In a trading update this morning, the smart buildings specialist said trading for its year ending 31 January 2017 has been "materially ahead of market expectations".
EBITDA and pre-tax profit are expected to hit £2m and £1.5m respectively, with revenues hitting about £41.5m. That compares to a pre-tax loss of £759,000 on revenues of £41m a year previously.
The announcement sent RedstoneConnect's shares up by as much as 16 per cent this morning to a high of £1.68.
That's still well down on what the firm was trading at before the wheels fell off the M&A strategy pursued by previous management. Its share price peaked at over £10 in mid 2014.
RedstoneConnect said the results demonstrate "the successful implementation of the strategy to focus on higher quality, higher margin business".
CEO Mark Braund (pictured) said: "We are delighted with RedstoneConnect's progress throughout the past year as we have continued to capitalise on our strong market position and have achieved a number of key milestones in our journey towards developing a more dynamic, robust and predictable business model.
"As innovation in smart buildings gathers pace, our software, managed services and systems integration businesses are all contributing to position RedstoneConnect as a market leader; and the company's recent large-scale contract wins are testament to this. In particular, the installation of our novel in-building cellular solution at the London office campus of one of the world's leading technology firms, is an example of the high quality work we are winning with major global organisations.
"Our sales pipeline appears strong and, combined with our solid recurring revenue stream, provides support and confidence in the outlook for the company."
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