Redcentric expects modest fall in first-half earnings

Wed, 27th Oct 2021

IT managed services provider Redcentric said expected to report a modest fall in first-half earnings. Adjusted earnings before interest, tax, depreciation and amortisation for the six months through September was seen falling to £12.0 million, down from £12.3 million year-on-year. Revenue had inched up to £46.4 million, from £46.2 million. 'We expect trading for the year ending 31 March 2022 to be in line with the board's expectations, including strong cash generation consistent with previous guidance,' Redcentric said. 'This is despite a continued lack of large-scale IT projects and supply chain issues remaining a feature of the sector.' Redcentric added that several of its electricity supply contracts fell due for renewal during the ongoing UK energy crisis. This would add £0.5 million of costs to the second half and at least £0.5 million in the first half of the 2023 financial year. Story provided by StockMarketWire.com

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