Revenue and profits tumble at Redcentric

MSP makes interim CEO permanent and appoints new CFO

Redcentric has seen its full-year revenue drop below £100m, despite a successful H2.

The AIM-listed MSP reported a tumble of 6.7 per cent to £93.3m for its year ending 31 March 2019.

Its EBITDA also shrank nearly eight per cent to £16.7m in its full-year accounts.

However, it wasn't all doom and gloom as the MSP enjoyed an H2 which saw it shave £5m off its operational costs, leading it to reduce its net debt by over £10m to £17.6m.

Its position as a preferred supplier on the Health and Social Care Network (HSCN) also saw it win £2.8m in deals.

Meanwhile, interim CEO Pete Brotherton has been made permanent in the role. Redcentric's former CFO stepped into the job after the previous chief exec Chris Jagusz resigned last year.

Dean Barber will join Redcentric as CFO at the beginning of September.

"We have made organisational and structural changes to best position the business for the future while at the same time progressing through historical issues that the business has faced," Brotherton stated.

"The second half of the year has seen success in the public sector with total contracts signed to date of £17m. Additionally, we have realised annualised cost savings of £5m.

"Our cash performance continues to be excellent and this, combined with our overall confidence in the future of the group, has allowed us to announce an improved dividend policy and seek authority to commence a share buyback programme."

Non-executive chairman Chris Cole added: "The recent board and management changes, operational improvements and financial stability of the company all demonstrate that we are well positioned for the future and a return to organic revenue growth."

The MSP has reported falling or flat sales since it was caught up in an accounting scandal in its financial 2017, though it reported that it has now recovered.

"While the impact this year of these historical issues has been significant, both in terms of management attention and financial consequence, it is pleasing to report that they have largely worked their way through the business," the chief exec stated.

"In parallel, the positive steps that have been taken to address the structure and capability of the sales and delivery functions, coupled with significant cost efficiencies and improvements to our network and platforms, gives us confidence for FY20 and beyond."