Redcentric sales bulked up by InTechnology acquisition

Managed services provider Redcentric releases an optimistic trading update as its financial year draws to a close

Redcentric, the managed services provider formed in early 2013 after an amicable split with Redstone, has announced an end-of-financial year trading update.

In a brief statement released to the market on the morning of 31 March, Redcentric claimed it was trading comfortably in line with market expectations, and expected its sales for the year ending 31 March to be strong.

It spoke of a strong business pipeline and a number of recent contract wins that will hopefully put it in good stead for a fruitful fiscal 2015 as well.

The integration of InTechnology, added Redcentric, was going according to plan. It has already established a group operating board across sales, operations and finance, and accounting and billing functions are set to be unified within the next six months.

In its first set of interims, which were released last autumn and covered the eight months from its admission to the AIM to the end of September, Redcentric made sales of £21m and EBITDA of £3.6m.

It is expected that its subsequent acquisition of InTechnology’s managed services business for £65m will substantially inflate full-year revenues, possibly by as much as £60m over the eight month figure, according to estimates by market watchers at TechMarketView.

Final results for Redcentric’s fiscal 2014 are due on 16 June.

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