Redstone eyes profitability

VAR's six-month interim financial statement shows it has reduced its net debt and is gunning for BSF contracts

Redstone is predicting a better 2010

Redstone has vowed to return to profitability after posting a £6.2m operating loss in its half year financials.

Despite the loss, the firm has reduced net debt by 36.5 per cent to £17.2m for the six months ended 30 September 2009, compared with debt of £27.1m in the same period of 2008, according to an interim statement released in late December.

On a continuing positive note the firm’s managed service division put in a strong performance with 42.2 per cent growth in adjusted EBITDA.

Turnover from continuing operations dropped 25.9 per cent to £49.3m, compared with £66.5m in 2008.

The firm also announced the creation of a separate division to handle its growing Building Schools for the Future (BSF) business, which went live on 1 January.

Redstone has already won a lucrative BSF contract in Birmingham worth up to £150m over 15 years, and is planning for more.

Last year Redstone revealed it was in negotiations over potential takeover talks, but announced in November that the talks had terminated.

It sold its telecoms arm to Daisy Group for £17m in 2009, which the financial statement revealed helped it to reduce bank debt.

Stephen Yapp, executive chairman at Redstone, said: “The board believes that the group has the resources and the opportunity to return to profitability.

“This process will take some time and is inevitably dependent on trading conditions improving as the country emerges from recession. However, the board is optimistic for the future prospects of the group.”