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Redcentric is starting to put its recent problems in the past as it seals a number of decent contracts and makes changes to distance itself from the accounting problems that came to light late last year.
The managed service player became embroiled in a Financial Consulting Authority investigation earlier this year following its own efforts to get to the bottom of accounting misstatement issues that had seen the firm part with its CFO and shown that the cumulative overstatement of net assets and profits after tax up to 30 September 2016 was approximately £20.8m.
Since then the firm has strengthened its financial team appointing Peter Brotherton as CFO and bringing in new auditors and getting its balance sheet reviewed by three different firms.
It has also maintained the loyalty of customers and staff and been able to deliver a set of full year numbers that included a slight rise in revenue to £104.6m, which included 86.2% of recurring revenue. It suffered non-recurring charges of £5.5m, a lot of which was connected with the accounting investigation issues, and came in with an operating loss of £3m.
"During this challenging period for the Company our clients and employees have remained loyal and focused, thus ensuring the day-to-day externally-facing business operations have continued satisfactorily. At the same time the financial structure and personnel have been reinforced and changed to provide resilient and accurate reporting. We now look forward to the business operating normally and trading well in markets that provide opportunities for growth," said Redcentric chairman Chris Cole.
In the year to 31 March the MSP secured 88 new logo wins which equated to £19.4m in contract value, including some larger customers like NHS Digital and Pizza Express. The firm also renewed three public sector contracts and has a strong pipeline with it looking for significant growth from existing network and datacentre estates.
"I would like to thank our Redcentric team for their hard work and dedication throughout the last 12 months. We have taken the necessary actions to strengthen the business where it needed work. We have a loyal client base and a solid market offering exemplified by our new business and cross selling wins. The underlying business is strong, sustainable and well positioned for the future," said Fraser Fisher, chief executive at Redcentric.