Redcentric plc is a mid-market network-based managed services business delivering information and communications technology (ICT) solutions and services. The Company delivers services, such as designing, implementing, securing and maintaining ICT networks; hosting services, software and data in the cloud, and managing the ICT environment utilized in the delivery of the services, software and data. It offers a range of network-based managed services solutions, including Managed security services, Connectivity solutions, Unified communications solutions, Hosted applications/Cloud services, Physical and virtual data centre services, and ICT project and hardware maintenance services. The Company was formed to facilitate the demerger of the network-based managed services business from the Redstone Group. On April 8, 2013 Redcentric Holdings Limited, a wholly owned subsidiary was demerged from Redstone plc.

http://www.redcentricplc.com/

Trading update and AGM statement

RNS


RNS Number : 5934O

Redcentric PLC

08 August 2014






8 August 2014

Redcentric plc

("Redcentric", "the Company" or "the Group")



Trading update and AGM statement

Redcentric plc (AIM:RCN), a leading UK IT managed services provider, is today issuing a trading update covering trading and financial progress in the year to date. This statement will be made at Redcentric's Annual General Meeting which is taking place at 12.00pm today at 100 Fetter Lane, London, EC4A 1BN.

Trading update

· Strong first quarter, delivering on all key performance indicators

· Organic growth at top end of management expectations

· Strong Q4 cash flow has continued into Q1, demonstrated by payment of maiden dividend

· Integration proceeding well

· Comfortable with full year market expectations

Financial performance in the first quarter of the year has continued to be strong, with revenue and profitability in line with management's expectations. This represents a significant improvement in year-on-year performance, with organic growth at the upper end of management's expectations. Cash generation has continued to be strong, allowing continued progress in net debt reduction, comfortably in line with plans. The Company's maiden dividend of 1.0p per share will be paid to shareholders on 5 September 2014.

Order intake has been strong; the Company has signed a significant number of new contracts in the period, both with new customers, and with existing customers for the provision of additional services. This progress underpins the Boards confidence in meeting full year expectations.

The integration of InTechnology Managed Services ("IMS") (acquired in December 2013) with Redcentric continues to progress well. The majority of the integration work was performed in the prior financial period leading to the expected synergies being delivered in the current financial year. As part of the integration work programme, unified branding has been launched across the Group, and as from 1 July 2014 all trading is taking place from a single legal entity, and from a single set of core systems.

Tony Weaver, Chief Executive of Redcentric commented:

"Following a strong performance last year, the trading pattern in the first quarter has continued. We are pleased that so many new and existing customers are recognising the work our team has done in creating one of the UK's leading managed service providers, and are committing themselves to Redcentric in increasing numbers. Our underlying platforms and infrastructure continue to grow in strength as we work towards completing the integration of IMS with Redcentric. We remain confident of continued good progress throughout the year."

8 Aug finnCap 150.00 Corporate

Pre-close trading update

RNS


RNS Number : 7750S

Redcentric PLC

29 September 2014






29 September 2014

Redcentric plc

("Redcentric" or "the Group")



Pre-close trading update

Redcentric plc (AIM:RCN), a leading UK IT managed services provider, is today issuing a pre-close trading update covering trading and financial progress in the six months to 30 September 2014. The Group expects to announce its interim results on Monday 17th November 2014.

Trading update

· Strong first half with revenue and EBITDA comfortably in line with expectations

· Increased order intake with strong organic growth

· Cash generation continues to be strong, net debt lower than anticipated

· Maiden dividend paid, interim dividend expected to be paid in February 2015

· Encouraging H1 underpins confidence in achieving full year market expectations

· Low level of gearing and highly cash generative nature of business provides freedom to consider strategic acquisitions alongside a progressive dividend policy

The business continues to perform well and consistently in line with expectations, with improved levels of order intake driving strong organic revenue growth. With integration activities proceeding to plan, profitability has increased substantially.

Cash generation has improved significantly since the comparative period in the prior year, which has resulted in net debt being lower than anticipated. The 1.0p per share maiden dividend was paid in September 2014 and the Company expects that an interim dividend will be paid in February 2015. The Group has substantial headroom in its bank facilities.

During the first half we have achieved several significant milestones, ahead of schedule, with the integration of InTechnology Managed Services Limited which was acquired in December 2013. From July 2014 we have fully adopted a single brand in the market and are trading from a single legal entity, using a core set of unified systems and processes. From September 2014 all customer support has been integrated and is being carried out from a single service desk and unified support system in our Harrogate head office. This evidences the deep and thorough nature of the integration being undertaken, and has resulted in a much stronger enlarged business from which to grow.



Tony Weaver, Chief Executive of Redcentric commented:

"I am delighted that the progress noted at our AGM in August has continued, and we expect to report a strong set of first half metrics in November.

"Our market remains subject to change, which we believe will continue to offer attractive opportunities for Redcentric to capitalise on as a leading independent provider. Our primary objective remains to deliver revenue growth, EBITDA margins in excess of 20 per cent. and attractive returns to shareholders. Our proven ability to generate cash and pay down debt provides us with a strong balance sheet to consider acquisitions that may help us to achieve these objectives, while surplus cash can be applied to our progressive dividend policy."

Shares -There's talk too of further acquisitions, something to excite investors since chief exec officer Tony Weaver has a track record of extracting value by bolting businesses together. A 150p share price target is reitererated by FinnCap which we believe could prove too conservative.

MARK SLATER: Six undervalued shares with the potential to become takeover targets


For its part, Redcentric is tapping into the rapidly growing demand for online storage and already has ‘sunk costs’ and infrastructure in place owning its own network and UK data centres on long term leases. Among other things, the company helps mid-sized customers transition and migrate their storage away from traditional company-owned servers to the Cloud.

The company is forecast to reach critical mass in terms of turnover (c. £100m) in the year ending March 2016. Itself a predator and a consolidator having acquired InTechnology, Redcentric sees potential for continued industry consolidation. Reportedly, there are a number of sub-optimal players in the £20m to £40m turnover range representing potential acquisition targets.

As recently as July there was evidence of more potential M&A activity when rival Iomart Group received a short-lived approach from a private equity firm regarding a possible cash offer. Redcentric itself is not immune from an approach.

Potential M&A activity aside, Redcentric is reasonably priced on a forward PE of 14x which compares favourably with a forecast earnings growth rate of 28% (Source: Company REFS 24.09.14). Reassuringly, the company has very good visibility of earnings with c. 78% recurring revenues.




http://www.dailymail.co.uk/money/investing/article-2801514/mark-slater-six-shares-potential-takeover-targets.html

Signal Update

Our system’s recommendation today is to STAY LONG. The previous BUY signal was issued on 31/10/2014, 12 days ago, when the stock price was 120.6500. Since then RCN.L has risen by +6.51%.

Market Outlook

Candlesticks warned us today to be on alert with a new bearish pattern. Market attention is now on the downside.


http://www.britishbulls.com/SignalPage.aspx?lang=en&Ticker=RCN.L

Interim results Mon 17 Nov

Interim Results

RNS


RNS Number : 1334X

Redcentric PLC

17 November 2014






17 November 2014

Redcentric plc

("Redcentric", "the Company" or "the Group")



Unaudited Interim Results for the six months ending 30 September 2014

Redcentric plc (AIM:RCN), a leading UK IT managed services provider, today announces its interim results for the six months ended 30 September 2014.

Highlights

· Revenue up 123% to £46.8m (H1 FY14: £21.0m), representing 11% organic growth

o Recurring revenue represents 80% of total (H1 FY14: 67%)

· Adjusted EBITDA* up 181% to £10.1m (H1 FY14: £3.6m), representing 32% organic growth

o Adjusted EBITDA* margin of 21.5% (H1 FY14: 17.1%)

· Profit before tax up 374% to £3.9m (H1 FY14: £0.8m)

· Net bank debt reduced by £3.6m to £8.7m (31 March 2014: £12.3m)

· Interim dividend of 1.0p per share (H1 FY14: nil)

· Diluted EPS of 2.20p (H1 FY14: 1.98p). Adjusted diluted EPS** up 15% to 4.89p (H1 FY14: 4.27p)

Tony Weaver, Chief Executive of Redcentric commented:

"This has been a period of great progress for Redcentric. We have achieved some very significant milestones with the integration of InTechnology Managed Services, and have been operating as a single business for some time now. Our first half results reflect the strength and capability of Redcentric; the business continues to trade strongly in the second half of the year, giving the Board confidence in our future prospects."

Chris Cole, Chairman of Redcentric commented:

"Since joining the Board in September my expectation regarding the professionalism, enthusiasm and maturity of the Redcentric team has been confirmed. These results demonstrate that Redcentric is in a strong financial position and supported by a growing, loyal client base. Tony and his team have developed Redcentric into a leading player in the market and the Board is confident that the Group will continue to deliver increased shareholder value in the years ahead."



* Earnings before interest, tax, depreciation, amortisation of acquired intangibles, transaction and integration costs and share based payments.

** Adjusted Earnings Per Share excludes amortisation of acquired intangibles, transaction and integration costs and share based payments and uses underlying cash tax borne.

====================================================

17 Nov finnCap 150.00 Corporate

IC - Redcentric looks to be firing on all cylinders as a major beneficiary of 'Big data' and the 'internet of things', both of which are driving demand for data. But its shares have risen more than half this year, and now trade on 16 times forecast earnings - ahead of the average peer multiple of 15 times. HOLD.

Brainloop chooses Redcentric's cloud service

RNS


RNS Number : 0348A

Redcentric PLC

18 December 2014






18 December 2014

RNS Reach

Redcentric plc

("Redcentric")



Brainloop chooses Redcentric's cloud service to deliver UK secure document collaboration



Brainloop has chosen Redcentric's Platform as a Service (PaaS) to underpin its portfolio of simple, secure, collaboration tools in the UK. The PaaS will support Brainloop's UK customers in sharing, storage and collaboration between managers, board members, employees, business partners and others who need to communicate on sensitive documents.



The cooperation will see Redcentric ensure compliant provision of Brainloop's trusted document collaboration and information sharing services to some of the UK's leading banks, pharmaceutical and manufacturing organisations, as well as financial and legal services amongst others. Key to Brainloop's decision was Redcentric's ability to deliver a resilient and accredited infrastructure, along with geographically diverse UK data centres connected via its MPLS network. Redcentric has ISO27001 and ISO9001 certifications and is PCI Compliant for hosting services at its Harrogate and Reading Data Centres.



Already a highly successful secure collaboration service in Germany, Brainloop's UK service will see Redcentric deliver PaaS within UK regulatory and customer requirements. Brainloop selected Redcentric as its platform partner because of its specific UK focus and regulatory compliance, as well as the importance and focus it places on security. Delivering IT services in the cloud means that Brainloop will benefit from the flexibility to rapidly and easily scale up to meet demand as required.



Brainloop offers one of the securest collaboration solutions available and a Gartner report on Trusted SaaS Offerings for Secure Collaboration cites the company as among those offering "the highest levels of trust based on support tasks with specific regulatory requirements for privacy, confidentiality and integrity."



Mark Edge, Brainloop's Vice President of Sales and Country Manager UK, says "We undertook a comprehensive due diligence exercise and believe that we can build a strong, mutually respectful relationship with Redcentric. There was trust there from the outset; this was demonstrated by Redcentric's extremely detailed, transparent tender response."



Brainloop's solution is highly secure and effective because it allows employees to collaborate any time and on any devices, while the organisation maintains control and has full visibility of how information is used and by whom. Brainloop also delivers end to end enterprise content protection with solutions to suit every individual department and document type.



"The use of collaboration solutions in business has become widespread," continues Edge. "But secure collaboration, required for highly sensitive documents or regulation-heavy markets, demands higher security and compliance requirements than an average collaboration solution can provide."



"That's why Brainloop chose to work with Redcentric. As part of our decision process, we commissioned an external security audit to be undertaken of Redcentric's security provisions. The resulting Security Assessment Report assured us that Redcentric was able to protect our customers and their data."



Andy Mills, Sales Director at Redcentric, said, "We're delighted to be working with Brainloop in the UK. The deal is a clear demonstration of our commitment to providing the very best in cloud services to the UK market."

Jim Slater -


Another of my tips, Redcentric, the IT services firm, has announced a deal with Brainloop, which has chosen Redcentric’s platform as a backup service. Increasing worries about internet security and hacking should ensure that Redcentric is kept very busy in the years ahead.

http://www.telegraph.co.uk/finance/personalfinance/investing/shares-and-stock-tips/11376838/Jim-Slater-two-more-IHT-free-Aim-shares-to-add-to-your-portfolio.html

Acquisition of Calyx Managed Services
RNS
RNS Number : 2361J
Redcentric PLC
02 April 2015

2 April 2015

Redcentric plc

("Redcentric" or the "Company")



Acquisition of Calyx Managed Services



Redcentric plc (AIM:RCN), a leading UK IT managed services provider, is pleased to announce that it has conditionally acquired Calyx Managed Services Limited ("Calyx") for a total consideration of £12 million, payable in cash on completion(subject to an adjustment for restructuring costs) (the "Acquisition"). Completion is expected to occur on or around 13 April 2015.

The Acquisition is expected to be immediately earnings enhancing. Calyx's portfolio of services and its range of customers are an excellent strategic addition for Redcentric, which will provide these new customers with high levels of service and exposure to a broader suite of solutions.

Redcentric is acquiring Calyx from MXC Capital Limited ("MXC Capital") following a period of significant restructuring, which included the disposals of the Break Fix and Carrier Services divisions. The acquisition is conditional on the completion of these disposals. Calyx is now a focused IT managed services and professional and infrastructure services business, free of liabilities arising from the restructuring process.

For the year ended 31 December 2014, Calyx's IT managed services and professional and infrastructure services business generated a turnover of £9.1 million and a gross profit of £5.1 million. As at 31 December 2014, the business had gross assets of £4.3 million. The Acquisition will be funded by a new bank facility announced separately today.

Fraser Fisher, Chief Operating Officer of Redcentric, commented;

"We are delighted with this acquisition: it fits our strategy well, and will be earnings enhancing as we expect to generate operating margins in line with our existing business. We welcome the Calyx clients and look forward to providing a high quality service while offering a broader range of solutions. This acquisition builds on our successful and growing Redcentric platform; following the integration of Calyx we will seek to augment our strong organic growth with further acquisitions that fit our investment criteria."



Related Party Transaction

The Acquisition is considered a related party transaction under the AIM Rules for Companies ("AIM Rules") on the basis that MXC Capital is a substantial shareholder in the Company and Tony Weaver, CEO of Redcentric, is a substantial shareholder of MXC Capital by virtue of his interest in MXC Holdings Limited (which is interested in 53 per cent. of the share capital of MXC Capital). In addition, Redcentric is paying corporate finance advisory fees of £300,000 to MXC Capital Advisory LLP ("MXCA") for advisory services in relation to the Acquisition (the "Advisory Fee") under an existing engagement with MXCA which is retained as corporate finance adviser to the Company. The payment of the Advisory Fee is considered to be a related party transaction under the AIM Rules for Companies on the basis that MXC Capital is the ultimate controlling party of MXC Capital Advisory LLP.

The directors, with the exception of Tony Weaver who is considered a related party under the AIM Rules for the purposes of the Acquisition and the Advisory Fee, consider, having consulted with finnCap Limited, that the terms of the Acquisition and the Advisory Fee are fair and reasonable insofar as shareholders of the Company are concerned.

Redcentric PLC (RCN:LSE) set a new 52-week high during today's trading session when it reached 167.00. Over this period, the share price is up 37.39%.

15 Jun finnCap 205.00 Corporate

Contract Win
RNS
RNS Number : 4191R
Redcentric PLC
29 June 2015

29 June 2015

Redcentric plc

("Redcentric" or "the Group")



Contract Win



Redcentric plc (AIM:RCN), a leading UK IT managed services provider, is pleased to announce that it has won a major new contract with the Health and Social Care Information Centre (HSCIC) worth in excess of £3.5 million.



Through the two year contract Redcentric will provide Database as a Service (DBaaS) devised to support a national infrastructure programme. DBaaS will power a repository for healthcare data in England enabling a range of reporting and analysis to support the NHS in the delivery of healthcare services. Delivered by Redcentric's team of database experts, the managed service is a proven model for delivering high availability cloud database environments and will support HSCIS's critical repository. DBaaS, procured via the G-Cloud framework, will be provided from Redcentric's England based secure and accredited data centres, delivering a highly scalable and high performance system.



Fraser Fisher Chief Operating Officer, commented: "We are delighted to be able to announce this contract win with the HSCIC. This latest win represents the continued endorsement of Redcentric's managed services and expertise within the Healthcare sector."

Jim Slater - Redcentric

Redcentric provides computer services from four data centres and networks around the UK – the current focus is to form long-term services contracts, working in partnership with the IT teams of its customers.

The results for the year ended March 31 were well up to expectations with growth in earnings per share of 33pc. More than 80pc of the company’s revenue is recurring and cash flow is strong.

In April, Redcentric made a £12m earnings-enhancing acquisition of Calyx, funded by a new £40m credit facility. Finncap, the company’s broker, forecasts 30pc growth in earnings per share next year and has a target price of 205p. At 182p the prospective p/e ratio is 16 and the shares are a strong hold

AGM statement
RNS
RNS Number : 5825X
Redcentric PLC
01 September 2015

1 September 2015

Redcentric plc

("Redcentric" or the "Company")



AGM statement



Redcentric announces that at the Annual General Meeting to be held at 10.00am this morning at 100 Fetter Lane, London EC4A 1BN, the Chairman, Chris Cole, will make the following statement:

"Following a good start to the year, the Company is trading well and in line with expectations. The integration of Calyx Managed Services is proceeding to plan. "

Redcentric will provide a fuller update on first half performance in its pre-close trading announcement.

Redcentric PLC (RCN:LSE) set a new 52-week high during today's trading session when it reached 197.00. Over this period, the share price is up 59.35%.

Pre-close Trading Update and Board Change
RNS
RNS Number : 6047A
Redcentric PLC
30 September 2015

30 September 2015

Redcentric plc

("Redcentric" or the "Company")



Pre-close Trading Update and Board Change

Redcentric plc (AIM:RCN), a leading UK IT managed services provider, announces a pre-close trading update covering the six months to 30 September 2015. The Group expects to announce its interim results on 9 November 2015. The company also announces that Fraser Fisher, currently Chief Operating Officer, is to be appointed Chief Executive Officer of the Company in succession to Tony Weaver, who remains on the Board as a non-executive Director.

Trading highlights

· Trading in line with market expectations

· Continued strong organic growth in recurring revenues

· New business momentum maintained, with some notable £1m plus contract wins

· Calyx integration on plan, full contribution in second half

· Strong cash generation

The strong start to trading noted earlier in the year has continued through the first half, with some significant new contracts augmenting the high levels of recurring revenues, which are in excess of 80% of total revenues. During the first half several significant contracts were won, including five £1m plus contracts with both Government and commercial clients.

The integration of Calyx Managed Services, acquired in April 2015, has progressed to plan. The financial benefits of the acquisition will be felt in full in the second half of the year.

Cash generation remains strong, and the company has substantial headroom in its recently renewed banking facilities.

Board changes

Fraser Fisher, the Chief Operating Officer of the Company, will become the Chief Executive Officer of the Company on publication of the Company's interim results on 9 November 2015, in succession to Tony Weaver, who will remain on the Board as a non-executive Director of the Company.



Chris Cole, Chairman of Redcentric commented:

"Redcentric is trading strongly. The high level of recurring revenue, increasing traction in the £1m plus contract market and the successful integration of Calyx all combine to give the Board confidence in the company's prospects.

I will be delighted to welcome Fraser as our new CEO. Fraser has a wealth of operational experience and has already made a significant contribution to the business. I am pleased that Tony Weaver will remain on the Board as a non-executive director, providing business continuity as well as maintaining our important links with MXC Capital who have been supporting the development of Redcentric's successful position in the AIM technology sector".

Upgrade = 30 Sep Numis 220.00 Buy