Data networking, connectivity and communication
After a period of relative instability where a misstating of accounting balances led to an FCA investigation, which has now been closed with a settlement and restitution scheme, Redcentric’s attention is once again on delivering its core products. The firm has recently looked to raise money with a placing of shares of £4.3m, in order to fund the restitution scheme of approximately £12.3m, and to build for the future.
And the future looks strong. Redcentric is about data networking, connectivity and communication, allowing businesses to boost productivity and employees to work more efficiently, leading to better customer outcomes. Working with a broad portfolio of clients ranging from the NHS and Virgin Care to Yo! (as in Sushi) and the Royal Institute of British Architects there is a constant need to develop networking systems across all sectors, especially now when remote and flexible working is coming to the fore.
Redcentric has shown strong financial performance in recent years – with preliminary results for the last financial year showing an adjusted EBITDA of 20% and headline revenues of £87.5m. This has been driven by recurring revenue growth and an increase in contracts with the public sector. The recent dealings with the FCA has diverted senior management attention away from the core business but now a settlement has been reached the focus is firmly back on growth.
June 2020 fundraise:
Sector: Information Technology
Amount raised: £4.3m at 110p/share
Please note this article is commentary only and does not constitute advice or a personal recommendation.