Trading Update
Summary by AI BETAClose X
The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the 'UK MAR') which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
1 June 2026
Redcentric plc
('Redcentric', the 'Company' or the 'Group')
Year to 31 March 2026 Trading Update
Solid MSP performance, delivering adjusted EBITDA1 above expectations
Redcentric plc (LSE: RCN), a leading UK IT managed services provider ('MSP'), is pleased to provide the following trading update for the year ended 31 March 2026 ('FY26').
Revenues1 for the MSP business for FY26 totalled c.£132.1 million (FY25: £135.1 million). Recurring revenues remained high at c.88%, underpinning excellent earnings visibility. Gross profit1 margin was c.61.0% (FY25: 61.6%).
Adjusted EBITDA1+2 for the MSP business for FY26 totalled c.£17.5 million, ahead of FY26 market expectations of £17.2 million. This performance reflects strong traction in the second half and continued effective cost discipline. The second half also saw the Company implement certain strategic investments designed to drive accelerated revenue growth and improved earnings from H2 FY27 and beyond.
Whilst the sector remains highly competitive, as noted in the interim results, the Company remains focused on securing and maintaining long-term higher margin business with continued tight cost control, to ultimately drive higher quality of earnings.
Strong Financial Position
Group adjusted net debt3 as at 31 March 2026 reduced to c.£36.8 million (FY25: £41.9 million), demonstrating solid operating cash generation by the Group, also ahead of expectation.
Following the disposal of the data centre business to Stellanor Datacenters Group Limited on 30 April 2026 and the associated initial cash receipt of £115.4 million, the Group's cash position (net of borrowings, excluding IFRS lease liabilities) strengthened significantly and as at 29 May 2026 the Group's net cash position was £77.9 million.
The robust performance in FY26 highlights Redcentric's market-leading position in UK managed IT services. The Board remains focused on expanding high-quality recurring margin streams while maintaining disciplined cost management to deliver sustainable value for shareholders. The recurring revenue model, lower capex requirements of MSP and improved cash conversion provide the Board with confidence in the medium to long term outlook of the business.
For the avoidance of doubt, the revenues, gross margin and earnings above exclude the results of the data centre business, which, under IFRS, have continued to be shown as a discontinued operation in the financial statements throughout FY26, prior to the sale of the business on 30 April 2026.
The Company will announce the date of release of its Final Results for the year ended 31 March 2026 in due course.
Michelle Senecal de Fonseca, CEO, commented: "I am pleased to report that we have delivered Adjusted EBITDA ahead of expectations. This reflects strong operational execution, disciplined cost management, and the successful delivery of our strategic priorities. With a significantly strengthened balance sheet following the data centre disposal, we are well positioned to accelerate growth and deliver sustainable value for shareholders in FY27 and beyond."
1 All financial data for FY26 is draft and unaudited
2 Adjusted EBITDA comprises earnings before interest, tax, depreciation and amortisation ('EBITDA') further adjusted for exceptional items and share based payments including National Insurance.
3 Adjusted net debt is reported net debt (i.e. total borrowings net of cash) less supplier loans and lease liabilities that would have been classified as operating leases under IAS17. This is based on the full Group combining both continuing MSP and discontinued data centre operations.
- Ends -
For further information:
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Redcentric plc Michelle Senecal de Fonseca, CEO Tony Ratcliffe, CFO |
via Burson Buchanan |
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Cavendish Capital Markets Limited - Nomad and Broker Marc Milmo / Callum Davidson (Corporate Finance) Andrew Burdis / Sunila de Silva (ECM) |
Tel: +44 (0) 20 7220 0500 |
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For media enquiries:
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Burson Buchanan (Financial Communications) Henry Harrison-Topham / Jamie Hooper / Toto Berger |
Tel: +44 (0) 20 7466 5000 |
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Notes to Editors:
Redcentric has a strong track record in delivering IT managed services provision that empowers businesses to scale, innovate and grow in a rapidly evolving digital landscape. As technology continues to advance the Company's goal is to be the go-to-all-in-one infrastructure and managed IT service provider for customers of all sizes offering an unmatched range of products and solutions.
The Company's MSP division serves the private and public sectors with all their IT requirements. The MSP division acts as an outsourced IT department, handling day to day maintenance and security of customers' IT infrastructures. This allows customers to improve security and efficiency and focus on growing their core businesses.
From infrastructure management and cloud services to cybersecurity and data analytics, Redcentric has a comprehensive suite of solutions designed to meet the diverse needs of modern businesses.
For additional information please visit www.redcentricplc.com
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