Redcentric (RCN)

Sector:

IT Services

Index:

FTSE AIM All-Share

 137.00p
   
  • Change Today:
      0.000p
  • 52 Week High: 158.00
  • 52 Week Low: 81.00
  • Currency: UK Pounds
  • Shares Issued: 154.77m
  • Volume: 164,851
  • Market Cap: £212.04m

Redcentric doubles dividend after swing to profit

By Duncan Ferris

Date: Thursday 28 Nov 2019

LONDON (ShareCast) - (Sharecast News) - Redcentric more than doubled its half-year payout on Thursday as it swung to a profit thanks to cost-cutting measures from its ongoing strategic review.
The IT services provider booked a profit before tax of £0.9m for the six months ended 30 September, compared with a loss of £0.1m for the same period last year.

The AIM-listed company hiked its interim dividend by 108% to 0.83p per share.

The drop in expenditure was due to particularly high investment in networks and platforms over the last two years, as well as cost efficiencies identified through the company's ongoing review of its data centre and network portfolio.

This resulted in the business vacating third party data centres and rationalising its legacy network connectivity contracts, which is expected to result in savings of at least £2.8m per year from 2021 onwards.

Meanwhile, turnover dropped 9% to £43.2m as the group said customers delayed their discretionary spending due to economic uncertainty surrounding the ongoing Brexit negotiations.

However, Redcentric argued that it had good future visibility, with £38.8m recurring revenue now representing 90% of the total amount, up from 87% last year.

Redcentric said: "We are cautiously optimistic for the future. The changes we have made over recent periods are beginning to yield results in both the private and public sector. Whilst we are operating in very competitive markets, we expect modest revenue growth in the second half and beyond."

Redcentric shares were up by 4.83% at 91.56p at 1033 GMT.

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Redcentric Market Data

Currency UK Pounds
Share Price 137.00p
Change Today 0.000p
% Change 0.00 %
52 Week High 158.00
52 Week Low 81.00
Volume 164,851
Shares Issued 154.77m
Market Cap £212.04m

Redcentric Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
82.45% below the market average82.45% below the market average82.45% below the market average82.45% below the market average82.45% below the market average
43.16% above the sector average43.16% above the sector average43.16% above the sector average43.16% above the sector average43.16% above the sector average
Price Trend
83.24% above the market average83.24% above the market average83.24% above the market average83.24% above the market average83.24% above the market average
74.26% above the sector average74.26% above the sector average74.26% above the sector average74.26% above the sector average74.26% above the sector average
Income
55.56% below the market average55.56% below the market average55.56% below the market average55.56% below the market average55.56% below the market average
50.00% above the sector average50.00% above the sector average50.00% above the sector average50.00% above the sector average50.00% above the sector average
Growth
6.61% above the market average6.61% above the market average6.61% above the market average6.61% above the market average6.61% above the market average
7.53% below the sector average7.53% below the sector average7.53% below the sector average7.53% below the sector average7.53% below the sector average

What The Brokers Say

Strong Buy 1
Buy 0
Neutral 0
Sell 0
Strong Sell 0
Total 1
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Redcentric Dividends

  Latest Previous
  Interim Final
Ex-Div 05-Dec-19 04-Jul-19
Paid 10-Jan-20 06-Sep-19
Amount 0.83p 1.00p

Trades for 24-Sep-2020

Time Volume / Share Price
15:57 10,000 @ 129.70p
16:35 12,500 @ 137.00p
16:29 2,000 @ 134.00p
16:29 5,000 @ 133.00p
16:26 7,500 @ 132.00p

Redcentric Key Personnel

CEO Peter Brotherton
CFO David Senior

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