Redcentric has posted a rise in full-year profits, despite admitting it "didn't sell enough" during the period.
The AIM-listed managed services provider saw revenue tumble 4.4 per cent to £100m in its year to 31 March 2018.
However, a cost-cutting drive which saw it trim headcount from 387 to 347 during the course of the year ensured adjusted EBITDA rose 4.7 per cent to £18.1m.
Having been dogged by an accounting imbroglio in its fiscal 2017, Redcentric is now in a "much stronger position" and has "maintained its principal customer base", chairman Chris Cole said.
Historical issues with billing and collection have been addressed, and net debt has been slashed from £39.5m to £27.7m year on year, he said.
Despite this, Redcentric recently trimmed its growth forecasts for its fiscal 2019 after admitting some public sector hosting customers are moving out of its datacentres into government-backed facilities. It now expects revenues and EBITDA for its current year to fall by five per cent and ten per cent respectively, against previous estimates.
"Whilst profitability has improved, revenue has declined a little, and this remains the biggest challenge for the group," Cole said.
"The management team is focused on growing the business and new appointments at the operating board level have been made to strengthen the sales function and drive future growth initiatives."
Chris Jagusz (pictured), who was appointed CEO nine months ago, also admitted plainly that the "business did not sell enough" during the year to generate revenue growth.
Since year end Redcentric has, however, been awarded the Yorkshire and Humber Public Services Network framework contract, which is its "biggest revenue opportunity" in its history with revenue reaching a potential £20m per annum.
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