Redstone demerger official today

Firm spins off Redcentric network managed services business as it continues its fight back

Redstone has officially spun off its network managed services business today as it pursues a two-pronged growth strategy.

The new firm, Redcentric – which was announced earlier this year – will trade on the London AIM market alongside the original Redstone. The move needed shareholder approval as well as court approval, both of which have been given.

In a statement the firm stressed its Redstone infrastructure solutions business was in good shape.

"Redstone remains a well-established infrastructure solutions provider to investment banks and other blue-chip organisations with a strong annuity-based campus network management division and a cabling projects business.

"The Redstone brand is well regarded and respected in the infrastructure solutions market and the directors believe that Redstone is well positioned to benefit from sector consolidation, as a standalone specialist infrastructure solutions business," it said.

Redstone has had a mixed recent history, having grown through acquisition to become a £200m market giant. But by 2009 the bloated business operated at a loss of £50m.

After downsizing considerably, in FY12 the firm near enough broke even on revenue of £67.2m. But it threw its hat back in the acquisition ring last autumn with a £13.8m buyout of the core business of ailing rival Maxima.