pressmaster -

Computacenter ‘materially above’ expectations and Redcentric exploring sale

Tech investors have received some cheer from Computacenter and some guidance around a possible sale from MSP Redcentric

Tech investors have woken to the news that Computacenter is on track to deliver solid numbers and Redcentric is exploring a sale.

Computacenter has followed Softcat in indicating that its next set of results will be decent despite the ongoing coronavirus pandemic.

The large corporate resellers have weathered the storm during Covid-19 fairly well and have been able to keep figures at or above expectations. Last month, Softcat indicated that recent trading had been “satisfactory” and, as a result, operating profit for the full year would be slightly ahead of the board’s expectations.

In a brief trading update ahead of interim results coming out this time next week, Computacenter gave an insight into its recent progress, talking of the momentum in the second quarter continuing in the weeks ending 31 August.

“The successful trading performance seen in the first half of the year has continued for the first two months of the second half,” the statement said. “As we consolidate our forecasts for the rest of the year, it has become clear to the board that the likely outturn for the year as a whole will be materially above the board’s previous expectations.”

Over at MSP Redcentric, the board was also looking for more value to give investors and disclosed that one of the methods of doing that might be to sell the business.

Investigating a sale was part of a strategic review that started in earnest after the firm concluded its FY20, having fully integrated acquisitions and made efficiency moves to put the business on a solid footing.

The firm stated: “FY20 was a significant year for Redcentric and it was a year in which the company ended the financial year in a much stronger position than it started in. Having successfully completed the integration of historical acquisitions and implemented efficiency initiatives across the business, the company was in an excellent position to actively start to explore the many opportunities open to it to deliver further shareholder value.

“In light of this confidence in the position of the company, the board of Redcentric believed that this was the correct time to ensure that it had explored the various options open to it to deliver shareholder value, including organic growth and/or evaluating potential acquisitions or the potential sale of the company.”

In the statement issued to investors, Redcentric confirmed that it was currently in discussions with Macquarie Principal Finance, UK branch and Six Degrees Holdings.

The firm said it had not received any approach or proposal to buy the company, but interested parties would have to contact its financial adviser, Stifel, to register an interest.

The market update added that there was no guarantee the current discussions would lead anywhere, but if they did, a formal sales process would be concluded by the end of the year.

“There can be no certainty that any offer will be made for the company, nor that any transaction will be executed, nor as to terms of any such offer or transaction,” it stated.

Read more on Finance and Credit