Trading Statement

RNS Number : 2218E

Redcentric PLC

05 May 2017

 

05 May 2017

Redcentric plc

("Redcentric" or the "Company")

Trading Update

Redcentric plc (AIM: RCN), a leading UK IT managed services provider, is today issuing a trading update for the year ended 31 March 2017.

The Company's trading results for the year were in line with the Board's expectations.  Redcentric experienced good sales momentum in the year with a number of key contract wins and renewals in both the public and private sectors.

Net debt as at 31 March 2017 was £39.5m, an improvement over the previously reported average net debt position to 30 November 2016 of £42.0m. This improvement was despite the significant exceptional items related to the forensic review.

Our lending banks have remained supportive over recent months and the Company is pleased to announce that amended debt facilities are now in place. Waivers in relation to historic covenant breaches have been secured such that the Company is fully compliant with its facilities. 

Good progress has been made with regard to the remedial programme outlined at the interim results in December.  The finance team has been further strengthened and a number of improvements made to internal systems and controls.  

Further details on the above will be included within the Company's full year results for the year ended 31 March 2017 to be announced on 29 June 2017.

Fraser Fisher, Chief Executive Officer, said;

"We are pleased to be able to report that trading is in line with expectations.  Throughout the challenges at the end of last year, we have continued to enjoy the support of our stakeholders including customers, banks and loyal colleagues.  A great deal of work has been carried out in the past few months to execute the remedial plan, strengthening our reporting and control systems."

Enquiries:

Redcentric plc	Via Tulchan Communications
Fraser Fisher, Chief Executive
Peter Brotherton, Chief Financial Officer
Numis Securities - NOMAD & Joint Broker	[phone]
Simon Willis / Oliver Hardy / Ben Stoop
finnCap Ltd - Joint Broker	[phone]
Stuart Andrews / Rhys Williams
Tulchan Communications	[phone]
James Macey White / Matt Low

 

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