Redcentric revenue declines in H1, ‘in line with expectations’

The results do not include the MSP’s datacentre arm sold in October

Yorkshire-HQ MSP Redcentric has shared mixed results in its recent H1 FY26 trading update.

Revenues were down 2.9 per cent, from £69m to £67m, reportedly in line with management expectations.

The firm explained this slowdown reflects its focus on selectively attracting and maintaining higher margin business.

On the other hand, EBITDA increased from £8.9m to £9.1m, above Redcentric’s predictions

In its trading update, the organisation said the improvement was driven by higher margin business and continued tight expense control, resulting in stronger quality of earnings.

These results do not include the revenues and earnings from its datacentre business, sold last month for £127m, which continue to be shown as a discontinued operation in the financial statements.

The disposal of its datacentre arm to Stellanor Datacenters Group is expected to be completed in Q1 FY26.

“The completion of the datacentre sale will allow management to focus squarely on the MSP business which has a very strong brand and market position in both the public and private sectors,” said Michelle Senecal de Fonseca, CEO of Redcentric.

The organisation, which originally operated as a “pure play” provider of managed IT services, established Redcentric Data Centres (RDC) as a new trading subsidiary to hold the trade and assets of the group's datacentre business, which were agreed to be transferred on 31 January 2025.

This followed a series of acquisitions from 2021 to 2022 to add capability and scale, leading to the buyout of Sungard's datacentre assets for £10m in 2022.

In FY25, Redcentric’s datacentre branch generated revenues of £44.6m.

Despite the value created, the split of the two business entities reportedly introduced operational and accounting complexities.

This decision comes after a year marked by leadership reshuffles for the organisation.

In May, Senecal de Fonseca was named CEO of the MSP, replacing Brian Woodford who decided to leave the business after two months for “personal reasons”.

In August, it named Tony Ratcliffe CFO and executive director, who took over after David Senior joined Nasstar earlier this year.

Redcentric currently ranks number 25 on CRN’s Top VARs list.