16th Mar 2015 07:33
LONDON (Alliance News) - Redcentric PLC Monday said it expects both revenue and earnings before interest, tax, depreciation and amortisation for the current financial year to be "comfortably" in line with market expectations, after a "strong performance" was maintained into the second half of the year.
"Trading in the second half of the year has continued the pattern reported in the first half, with good performance across the whole business, strong organic growth in recurring revenues and continued expansion of Ebitda margins," it said.
Last November, the IT managed services provider reported a pretax profit of GBP3.9 million for the first half of the financial year, up from just GBP812,009 a year before, as revenue rose to GBP46.8 million from GBP21.0 million. Its Ebitda margin rose to 21.5%, from 17.1% a year earlier and ahead of its target of more than 20%.
The company's financial year runs until March 31. It expects to reports its results for the year on June 15.
The company said its strong cash-flow means it is reducing debt in line with expectations, and it is also considering acquisitions and expects to recommend a final dividend for the current year.
"With high levels of recurring revenue and strong Ebitda margins and cash-flow, the group is well set to maintain its growth momentum," it said.
Redcentric is expected to report a pretax profit of GBP15.5 million for the current year, earnings per share of 8.30 pence and a dividend of 3.5p, according to a consensus of three analysts on Morningstar.
By Steve McGrath; [email protected]; @stevemcgrath1
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