Redstone bags £22m banking deal

VAR lives up to pledge of growing business in the City after landing bumper 12-month datacentre deal

Networking VAR Redstone has landed a bumper £21.9m banking deal equivalent to almost a third of its annual revenue.

The London-listed reseller has been given the task of designing and delivering a new four-hall datacentre for an unnamed "leading UK bank", with which it enjoys a long-standing relationship.

Redstone chairman Ian Smith recently indicated that the VAR – which by its own admission nearly ran aground last year – would focus on growing its business in the City following a series of financial services wins. The VAR bagged two contracts worth a combined £10m with a Fortune Global 500 UK bank in December 2010 and March 2011, before picking up a £10m, four-year contract extension with an unnamed US bank in June.

But these three deals are dwarfed by the latest contract, which will kick off in November. Over a 12-month period, Redstone will provide the bank with underlying structured cabling and cabinets, as well as an intelligent management system and an environmental monitoring solution.

Redstone chief executive Tony Weaver said the win demonstrates Redstone's strength in the financial sector.

"Following our other recent announcements regarding key wins in the sector, this latest deal shows once again the faith our customers place in us to deliver their mission-critical datacentres," he added.

Redstone posted revenue of £67.1m in its most recent financial year to 31 March as pre-tax losses narrowed from £11.1m to £6.6m.