Redstone slashing costs after loss

IT and comms solutions provider Redstone is attempting to slash up to £7m from its cost base by the end of December after posting a net loss for the six months to the end of September. Although Redstone's revenues were up 10% year-on-year to £106m, after all the sums were added up itwent

IT and comms solutions provider Redstone is attempting to slash up to £7m from its cost base by the end of December after posting a net loss for the six months to the end of September.

Although Redstone's revenues were up 10% year-on-year to £106m, after all the sums were added up it went into the red to the tune of £1.06m. 

Chief executive Martin Balaam said that a "significant" reduction in orders during the first half had already forced the firm to start reducing its cost base.

"Cost reduction measures have been implemented in order to maintain EBITDA levels during the second half of the year and potentially into the following year unless it sees the major project pipeline restored," he said. 

In a statement Balaam said he was already renegotiating credit facilities with Redstone's bankers but he did not detail where the cost cuts are being made. 

He added: "To the extent that Redstone can support it, we have continued to invest in long-term organic growth opportunities such as BSF, fibre to the home, SME, cross-selling, security products and OneNet capabilities."

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