Revenue up 62 per cent, as Redcentric posts bumper post-buy results
Firm sets sights on bigger mid-market slice
Managed services biz Redcentric reported a significant increase in sales and profits for its full-year 2015 results, as the firm's acquisition strategy began to bear fruit.
The Yorkshire outfit posted an increase in revenue of 62 per cent to £94.3m, compared with 2014. Profits rose to £8m from £1.8m for the same period.
The increase is mainly due to its acquisition of InTechnology Managed Services filtering through to the balance sheet. The firm gobbled up InTechnology for £65m in a reverse takeover in December 2013.
After a period of abstinence, Redecentric got back on the acquisition trail in April this year, snapping up Calyx Managed Services for £12m. The firm said Calyx is currently "being integrated" in the biz.
"Redcentric has been able to build both its order book and sales team," said Peter Roe, analyst at TechMarketView, "signing a number of contracts with government agencies and building its order pipeline by 18 per cent over the past six months, to £71m."
"This success should further reinforce the company’s position in serving the mid-market as the use of off-premise solutions continues to grow."
Redcentric hinted more acquisitions could be on the cards, saying in its outlook for the year ahead that it will "consider augmenting our pace of growth through acquisitions".
Chris Cole, chairman of Redcentric, said: "The post year-end acquisition of Calyx is another step in our growth ambitions and our determination to deliver value to our shareholders."
Tony Weaver, chief executive of Redcentric, said the firm is "progressing well" in its aim "to become the preferred IT managed services provider to the UK mid-market." ®