Redcentric pressures ease as revenue tops £100m

MSP hits revised targets following accounting scandal

Redcentric has put a "challenging year" behind it after hitting revised financial targets with revenue of over £100m.

The MSP has been dragged through various audits and investigations after the discovery of accounting errors revealed it had overstated net assets and profit by over £20m.

A statement was released last month claiming Redcentric had however managed to hit its trading targets, and a further statement to the London Stock Exchange today revealed revenue of £104.6m for the 12 months ending 2017.

Among this revenue was £90m from clients that have "remained loyal", while key wins have brought in contracts worth over £19.4m from the new clients.

Chris Cole, chairman of Redcentric, said: "During this challenging period for the company our clients and employees have remained loyal and focused, thus ensuring the day-to-day externally facing business operations have continued satisfactorily.

"At the same time the financial structure and personnel have been reinforced and changed to provide resilient and accurate reporting.

"We now look forward to the business operating normally and trading well in markets that provide opportunities for growth."

To address the errors, Redcentric has appointed a new chief financial officer and new auditors have been in place since last month.

It has also implemented more robust internal controls and is in the process of scrapping multiple legacy back-office systems for a new Microsoft platform.