20th Nov 2024 12:15
(Alliance News) - Redcentric PLC on Wednesday said its chief executive will remain until the end of June as it reported growth in its interim trading.
In the six months to September 30, the Harrogate, England-based IT service provider reported a pretax profit of GBP3.6 million, compared with a pretax loss of GBP700,000 the prior year.
Revenue for the period rose 5.8% on-year to GBP86.8 million from GBP82.0 million driven by core business organic growth, with a strong performance in VMware licence sales helping to offset a tougher wider sales environment.
The firm kept its interim dividend flat year-on-year at 1.2 pence per share.
Redcentric said it is "cautiously forecasting" a broadly flat second-half with regard to revenue and gross profit as its second-half order intake is unlikely to convert into revenue growth until the next financial year. It expects an improved profit performance owed to cost savings of GBP900,000.
It said this would represent full-year revenue increasing on-year by approximately 7% from GBP163.2 million and adjusted earnings before interest, tax, depreciation and amortisation going up by at least 30% from GBP28.3 million.
The firm previously announced at its full-year results in August that Chief Executive Peter Brotherton intended to step down and on Wednesday confirmed he will remain with the business until the end of June to support with a smooth handover and transitionary period once his successor is identified.
Brotherton said: "Half-year financial year 2025 marks the first reporting period to fully reflect the benefits of the investments made in financial years 2022 and 2023.
"With the energy market returning to more normalised conditions, combined with the positive impact of energy conservation and integration measures implemented in financial year 2024, the company has delivered strong financial results for the six months.
"Looking ahead, we anticipate valuation clarity and definable improved profitability from the strategic decision to separate reporting and implementation of growth initiatives to the core two businesses."
Redcentric shares were down 0.4% at 116.00 pence on Wednesday afternoon in London.
By Christopher Ward, Alliance News reporter
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