Redcentric in the black during FY23 thanks to acquisitions

The British MPS reported a 52 per cent growth in FY23 following five acquisition

British MSP Redcentric has reported a 51.8 per cent growth to reach £141.7m in total revenue, according to its preliminary FY23 results.

The company's recurring revenue also grew by 54.8 per cent to £128.5m, with recurring revenue representing 90.7 per cent of the total revenue.

Adjusted EBITDA was £24.5m and 3.3 per cent ahead of FY22, while adjusted operating profit decreased by £7.3m to £8.6m (45.6 per cent decrease).

During FY23 the business completed acquisitions of 4D Data Centres, Sungard Consultancy and Sungard Data Centres, which it claimed added significant scale and additional cyber security capability, complimenting the capability acquisitions of Piksel and 7 Elements made in FY22.

Redcentric said that as a result of the five acquisitions completed over the last two financial years, over six hundred customers have been added to its existing base and we exited FY23 with a revenue run rate of £160m, representing a 75 per cent increase on FY21, the last full year with no impact of acquisitions.

The company also reported that its product and solutions offerings have been strengthened in high growth areas.

Peter Brotherton, CEO of Redcentric commented: "The integration of the five acquisitions undertaken in the last two financial years is now largely complete, with the savings pertaining to the remaining energy conservation measures and closure of the Harrogate Data Centre to be realised before the end of the current financial year.

"The acquisitions have resulted in a significant increase in revenues and much improved organic growth.

"Improvements in profitability will follow in FY25 once the synergy and energy efficiency programmes have been completed and the much-reduced electricity commodity prices take effect."

In December 2022, Brotherton had called this period "transformational for the business" following the first three acquisitions.