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Redcentric PLC on Wednesday said it is focused on recurring revenue and managing costs in the new financial year, as it said the successful sale of its Data Centre business will result in a ‘material return of capital to shareholders’. The Harrogate, North Yorkshire-based IT service provider reported £4.4 million in profit before tax on continuing operations for the financial year that ended March 31, more than doubling from £1.8 million a year earlier. Driving the improved earnings was an 8.3% top-line gain from continuing operations to £135.1 million from £124.7 million, with recurring revenue rising 9.0% to £120.7 million from £110.7 million. As a percentage of revenue, recurring revenue rose to 89.3% from 88.7%. During the financial year, Redcentric sought to separate its Managed Service Provider and Data Centre business units, and it currently is in advanced negotiations regarding the potential sale of the DC unit. As a result, this is treated as a discontinued operation in its statement. Redcentric suspended its final dividend payment for the financial year, owing to the potential sale. However, should the sale successfully conclude, it expects to exercise a ‘material return of capital to shareholders’. ‘This prudent step will be kept under review pending the outcome of the DC business sale discussions,’ the company said. Shares in Redcentric were 1.9% higher at 134.98 pence on Wednesday morning in London. Looking ahead to financial 2026, Redcentric said its focus is on recurring revenue, as well as managing costs to deliver ‘the strongest possible margin and cash flow’. It also noted stable revenue expectations for financial 2026. Chief Executive Michelle Senecal de Fonseca commented: ‘These are positive results in what has been a busy and transformational year for the group. Significant groundwork has been completed, paving the way for the possible disposal of the DC business, which I look forward to updating shareholders on in due course. Our ongoing focus is on MSP, which has a strong business model, brand and market position in both public and private markets. ‘I look forward to driving the MSP business ahead in the coming years and am presently refining the go-forward strategy. I also look forward to providing a more detailed update on this strategy at the interim results.’ Copyright 2025 Alliance News Ltd. All Rights Reserved.
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