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Smart cities and managed services deliver for RedstoneConnect

A trading update from RedstoneConnect has revealed it is on track to report a solid fiscal 2016

Last Summer the COMS Group rebranded as RedstoneConnect and set about growing its presence in the smart buildings market.

The AIM listed operation has indicated that those plans are gaining headway in a trading update ahead of the release of its full year results for the 12 months ended 31 January.

The firm has revealed that pre tax profits should come in at the £1.5m mark, EBITDA will be around £2m and it will be in a positive net cash position of £3.2m at the year-end.

In the last fiscal year the firm has landed some major customers with its OneSpace software, which helps manage workspace utilisation. There has also been a solid flow of managed service contracts coming through.

"As innovation in smart buildings gathers pace, our software, managed services and systems integration businesses are all contributing to position RedstoneConnect as a market leader; and the company's recent large-scale contract wins are testament to this," said Mark Braund, CEO of RedstoneConnect.

"Our sales pipeline appears strong and, combined with our solid recurring revenue stream, provides support and confidence in the outlook for the company," he added.

Commenting on the numbers in the TechMarketView daily news update Martin Courtney, principal analyst at the firm,    , said that it would have to keep that momentum going.

"We think its challenge now will be to maintain that organic growth momentum by expanding into new geographies and fostering closer integration and upselling between its design and installation, software and managed service divisions," he stated.

"In particular it has to continue moving beyond infrastructure services provision to support customers’ broader digital transformation initiatives around smart offices, buildings, cities and the Internet of Things (IoT) that should offer better financial returns," he added.

The full year-end results will be released in the last week of April.

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