15th Aug 2024 12:09
(Alliance News) - Redcentric PLC on Thursday said it is now focused on delivering profitable growth, noting opportunities via artificial intelligence related demand, as it posted a solid revenue climb.
The Harrogate, England-based IT service provider said pretax loss narrowed to GBP4.7 million in the financial year ended March 31 from GBP12.5 million a year prior.
Revenue climbed 15% to GBP163.2 million from GBP141.7 million.
Operating costs increased 8.5% to GBP119.3 million from GBP109.9 million, while cost of sales increased 9.6% to GBP45.1 million from GBP40.8 million.
Redcentric recommended a final dividend of 2.4 pence per share, unchanged from a year ago. This brings the total payout to a flat 3.6p.
Looking ahead, Chair Nick Bate said: "The business has entered FY25 with a significantly enhanced scale, strong organic revenue growth, significantly reduced electricity costs and some very exciting sales prospects. Management are now focussed on delivering profitable growth to drive improved margins and cash generation, whilst ensuring service levels are maintained to limit customer cancellation and price erosion risks."
Chief Executive Officer Peter Brotherton said: "The focus for FY25 will be to drive organic revenue, profit and cash flow growth by cross selling the broadened product and solution portfolio into the enlarged customer base, whilst also capitalising on the structural opportunities presented by AI related demand and the recently awarded VMware Pinnacle partnership agreement."
Redcentric shares were 0.3% lower at 139.32 pence each on Thursday afternoon in London.
By Tom Budszus, Alliance News slot editor
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