Redcentric (RCN)

Sector:

IT Services

Index:

FTSE AIM All-Share

115.00p
   
  • Change Today:
      1.50p
  • 52 Week High: 115.00p
  • 52 Week Low: 68.00p
  • Currency: UK Pounds
  • Shares Issued: 148.76m
  • Volume: 10,445
  • Market Cap: £171.08m

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 115.00p
Change Today 1.50p
% Change 1.32 %
52 Week High 115.00p
52 Week Low 68.00p
Volume 10,445
Shares Issued 148.76m
Market Cap £171.08m

Redcentric Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
45.9% below the market average45.9% below the market average45.9% below the market average45.9% below the market average45.9% below the market average
74.19% above the sector average74.19% above the sector average74.19% above the sector average74.19% above the sector average74.19% above the sector average
Price Trend
89.57% above the market average89.57% above the market average89.57% above the market average89.57% above the market average89.57% above the market average
72.82% above the sector average72.82% above the sector average72.82% above the sector average72.82% above the sector average72.82% above the sector average
Income
97.58% below the market average97.58% below the market average97.58% below the market average97.58% below the market average97.58% below the market average
18.92% above the sector average18.92% above the sector average18.92% above the sector average18.92% above the sector average18.92% above the sector average
Growth
48.36% below the market average48.36% below the market average48.36% below the market average48.36% below the market average48.36% below the market average
68.42% below the sector average68.42% below the sector average68.42% below the sector average68.42% below the sector average68.42% below the sector average

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 21-Feb-2020

Time Volume / Share Price
16:35 11 @ 115.00p
11:21 25 @ 115.00p
09:03 250 @ 114.34p
08:54 5,000 @ 114.00p
08:54 5,000 @ 114.00p

Redcentric Key Personnel

CEO Peter Brotherton

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