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Redcentric PLC on Wednesday reported an increase in interim profit as it tightened costs amid the sale of its Data Centre business. The Harrogate, North Yorkshire-based IT service provider said pretax profit rose 19% to £1.9 million for the six months ended September 30 from £1.6 million a year ago. The bottom line strengthened despite revenue falling 3.6% to £66.8 million from £69.2 million. This was primarily due to finance costs decreasing 19% to £1.7 million from £2.1 million, as the unutilised element of the revolving credit facility was reduced, as well as the cost of sales falling 9.5%, outpacing the revenue drop. In October, Redcentric announced the disposal of its DC business to Stellanor Datacenters Group Ltd in order to focus on its Managed Services Provider business. ‘The work involved in the separation of the two business units during the period, plus the time focused on the DC disposal has presented some significant and inevitable distractions during this financial year,’ the company said. It said it remains focused on completing the DC sale transaction by the end of March 2026. Looking ahead, Redcentric said it expects broadly flat full-year MSP revenue due to the market environment and ‘distractions’ experienced in the year from the disposal. It added that is ‘confident’ in its medium to long-term outlook for earnings and cash generation. ‘Whilst the transformational year has been challenging, it is pleasing to see that our focus on securing and maintaining higher margin business and managing costs has already delivered improved margins from the MSP business,’ said Chief Executive Michelle Senecal de Fonseca. ‘With the sale of the DC business now announced, our ongoing focus is very much on MSP as we start to execute the new strategy and growth plan which we believe will accelerate growth in both revenue and earnings in the years to come, building on the strong foundations of a market leading position and a high recurring revenue model.’ Shares in Redcentric fell 2.6% to 123.68 pence on Wednesday morning in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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