Redcentric flags earnings ahead of expectations for MSP business
By Josh White
Date: Monday 01 Jun 2026
(Sharecast News) - Redcentric said on Monday that its managed services provider business delivered adjusted earnings ahead of expectations in the year ended 31 March, supported by strong second-half trading and cost discipline.
The AIM-traded UK IT managed services provider said revenue from its continuing MSP business was about £132.1m for the 2026 financial year, down from £135.1m a year earlier.
Recurring revenues remained high at around 88%, which the company said continued to provide strong earnings visibility.
Gross profit margin was about 61.0%, compared with 61.6% in the prior year, while adjusted EBITDA for the MSP business came in at about £17.5m, ahead of market expectations of £17.2m.
Redcentric said the performance reflected strong traction in the second half of the year, as well as continued effective cost control.
It added that it had made strategic investments during the second half designed to support accelerated revenue growth and improved earnings from the second half of the 2027 financial year onwards.
The company said the sector remained highly competitive, but that it would continue to focus on securing and retaining long-term, higher-margin business while maintaining tight cost control to improve the quality of earnings.
Adjusted net debt at 31 March was reduced to about £36.8m from £41.9m a year earlier, reflecting solid operating cash generation and coming in ahead of expectations.
Following the sale of its data centre business to Stellanor Datacenters Group on 30 April and the associated initial cash receipt of £115.4m, Redcentric said its balance sheet had strengthened significantly.
As at 29 May, the group had a net cash position of £77.9m, excluding IFRS lease liabilities.
The company said the figures for revenue, gross margin and earnings excluded the data centre business, which continued to be shown as a discontinued operation in its financial statements through the 2026 financial year before the disposal completed.
Chief executive Michelle Senecal de Fonseca said the adjusted EBITDA outperformance reflected "strong operational execution, disciplined cost management, and the successful delivery of our strategic priorities".
"With a significantly strengthened balance sheet following the data centre disposal, we are well positioned to accelerate growth and deliver sustainable value for shareholders in FY27 and beyond," she said.
Redcentric said it would announce the date of its final results for the year ended 31 March in due course.
At 1328 BST, shares in Redcentric were up 2.37% at 127.96p.
Reporting by Josh White for Sharecast.com.
See latest RNS on Investegate
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN