Smith steps back as Redstone losses narrow

Redstone chairman Ian Smith has stepped back from the role he took on in 2010 as the IT and networking integrator consolidates its recovery.

Redstone chairman Ian Smith has stepped back from the role he took on in August 2010 to become a non-executive director of the IT and communications solutions integrator.

Richard Ramsay, non-executive chairman, said: “The business has made great progress during Ian’s tenure and on reflection Ian felt, with the Board’s support, that continuing as a non-executive director was a more appropriate and cost-effective position for the Company.”

As its remarkable recovery continues, Redstone has lifted the lid on its full-year results to the end of March, revealing a tiny increase in sales and a substantial improvement in overall losses.

Revenues at Redstone ticked up just 0.2%, or £100,000 on the previous year’s figures, hitting £67.2m against a “very difficult market backdrop,” while net losses of £1.6m were a vast improvement on last year, when the firm sunk to a loss of £11m. EBITDA, meanwhile, improved substantially to £5.2m.

In a statement to the City today, Redstone said that it was now firmly re-established “as a sound and stable business” and had “protected and maintained the strength of our brand with our clients”.

“The business has performed well set against a very difficult market backdrop,” said chief exec Tony Weaver, “all the more creditable considering that the predominately new sales team was in place for only part of a year in which we also implemented a new strategy.”

The firm said it would continue to invest to expand the capabilities of its core network to keep pace with the development of the cloud services market.

Late last month Redstone also secured a new £15.5m revolving credit facility with Barclays, replacing the existing term loan and overdraft facility and extended available committed facilities through July 2015.

The new arrangement to mark a return to relationship banking following its lengthy restructuring period, and Weaver said the firm was pleased at levels of confidence in Redstone’s prospects and strategy.

The money will be used to provide additional working capital headroom, rather than increase core borrowing, which it is trying to bring down.

Read more on Finance and Credit