Feeds

Redstone 'delighted' after year of takeovers

Conversant with convergence

Secure remote control for conventional and virtual desktops

Redstone, the long-time loss-making fixed-line telecoms firm,has morphed into a new age IT and telephony hybrid with a positive bank balance after a year of financial restructuring and acquisitions.

The turnaround followed the arrival in 2005 of a new management team led by CEO Martin Balaam and CFO Tim Perks. The last year has seen the execution of their rescue plan for the ailing group.

In the 12 months to 31 March 2007 they shunted its listing from the full London Stock Exchange to AIM, spent £49.8m acquiring four other firms, beefing out its anachronistically positioned telecoms business, erased £192m of losses accumulated since its float in 1999 by some balance-sheet off-setting, turned a profit, and even left shareholders with the hope that they might one day get a dividend.

Revenues are up 56 per cent on last year, to £113.0m. A loss of £22.5m last year has become a £100, 000 profit.

Along with more Voip business Redstone's acquisitions also filled out its IT infrastructure services business. Redstone's old telecoms business, which had been its mainstay, now accounts for only a third of its revenues. Almost 40 per cent of its sales are now in IP telephony and related services, a business that helped it win some large mid-market contracts with Lancashire Building Schools for the Future and the Bristol and Leicester shopping centre.

Balaam said in a statement to the City that he was "delighted". Redstone issued shares last year, raising enough money to spend £20m acquiring Symphony Telecom Holding plc and the Tolerant group, both of which it integrated as parts of Redstone Telecom, Redstone Mobile, and Redstone Managed Solutions.

It spent £18m on IP telephony outfit Communica and raised another £31.5m on an overdraft with Barclays, £11.5m it spent on IDN Telecom plc, beefing up its old Redstone Telecom unit and the mobile division, most of which is a distribution business "servicing" 450 phone dealers.®

Gartner critical capabilities for enterprise endpoint backup

More from The Register

next story
UK fuzz want PINCODES on ALL mobile phones
Met Police calls for mandatory passwords on all new mobes
Canadian ISP Shaw falls over with 'routing' sickness
How sure are you of cloud computing now?
Don't call it throttling: Ericsson 'priority' tech gives users their own slice of spectrum
Actually it's a nifty trick - at least you'll pay for what you get
Three floats Jolla in Hong Kong: Says Sailfish is '3rd option'
Network throws hat into ring with Linux-powered handsets
Fifteen zero days found in hacker router comp romp
Four routers rooted in SOHOpelessly Broken challenge
New Sprint CEO says he will lower axe on staff – but prices come first
'Very disruptive' new rates to be revealed next week
US TV stations bowl sueball directly at FCC's spectrum mega-sale
Broadcasters upset about coverage and cost as they shift up and down the dials
Trans-Pacific: Google spaffs cash on FAST undersea packet-flinging
One of 6 backers for new 60 Tbps cable to hook US to Japan
Tech city types developing 'Google Glass for the blind' app
An app and service where other people 'see' for you
UK mobile coverage is BETTER than EVER, networks tell Ofcom
Regulator swallows this line and parrots it back out at us. What are they playing at?
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.