25. Redcentric

Revenue: £163.2m

Redcentric heads into FY25 with momentum on its side. Following a period of intensive M&A activity and integration, the business now has a solid platform for growth—and it’s already beginning to show. With all major integration programmes completed in FY24, Redcentric has shifted gears, focusing on driving organic growth across its three core service towers: cloud, connectivity and communication.

This organic momentum has been aided by an agile, responsive culture that enabled the business to move quickly and take advantage of market shifts, most notably the Broadcom acquisition of VMware. That industry shake-up created an opening Redcentric was quick to exploit, winning several new customers and expanding its market share in a highly competitive space. Early signs suggest further upside too, with cross-sell conversations already underway.

The integration of Sungard’s datacentre assets—particularly the West Yorkshire and London West facilities—has added serious firepower to Redcentric’s infrastructure proposition. These sites are now gaining traction with a larger customer base looking for secure, high-density hosting options for mission-critical workloads. With demand for AI infrastructure rising, the timing looks favourable. Both sites offer the power and space capacity increasingly required by AI deployments—an area Redcentric is well placed to capitalise on.

Redcentric has also made major strides in tackling energy efficiency, an issue that has loomed large since its spate of acquisitions in FY23. Through targeted operational measures, electricity consumption at its London West and Woking data centres has been reduced by approximately 40%. Combined with newly secured, lower energy rates from April 2024, the company anticipates a saving of around £8m in electricity costs over FY25—helping both the bottom line and its carbon footprint.

As the company focuses on profitable organic growth, it continues to keep an eye on acquisition opportunities. With £40m of its £80m bank facility still available, Redcentric retains significant financial firepower should the right deal come along.

FY25 also marks a period of leadership transition, with CEO Peter Brotherton announcing his intention to retire. Having steered the business through a turbulent turnaround and into a phase of renewed growth, Brotherton leaves behind a stronger, more scalable business. His successor will inherit a company with sharpened focus, improved operating leverage, and growing confidence in the market.