Redstone bags finance deal

Soon-to-be demerged VAR wins £6.9m contract extension and expansion

VAR Redstone has notified the Stock Exchange of a multimillion-pound contract win with an unnamed financial services firm.

The AIM-listed outfit – which is in the process of splitting in two – said this morning it has bagged a renewal and expansion of a managed services deal worth about £6.9m over three-years.

The deal sees the renewal of the existing "adds, moves and changes" arrangement between the two parties.

Redstone has also won an extension of the contract to encompass deskside high-touch support services across the UK. The extension also covers EMEA, which Redstone said throws up potential new opportunities.

Redstone is in the process of splitting into two separate AIM-quoted businesses, renaming its higher-margin managed services business under the Redcentric banner.

Redcentric is set to be admitted to AIM on 24 April, Redstone said last week, slightly later than the 16 April date quoted originally.

Fraser Fisher, managing director of Redstone Group Operations, said of the deal extension: "This is a fantastic win for our campus services division. It extends a long-running relationship for another three years and demonstrates how Redstone's flexibility is well received by clients and is winning us additional business."