Redcentric has posted a rise in full-year profits but has told shareholders it did not sell nearly enough product.
The MSP saw revenue tumble 4.4 percent to £100 million in its year ending 31 March 2018 and some of this was due to trimming its headcount from 387 to 347 during the course of the year ensured adjusted EBITDA rose 4.7 percent to £18.1 million.
Chairman Chris Cole said Redcentric was now in a “much stronger position” and has “maintained its principal customer base”.
Historical issues with billing and collection have been addressed, and net debt has been slashed from £39.5 million to £27.7 million year on year, he said.
It said that it had lost some public sector hosting customers who are moving out of its data centres into government-backed facilities. It now expects revenues and EBITDA for its current year to fall by five percent and ten percent respectively, against previous estimates.
“Whilst profitability has improved, revenue has declined a little, and this remains the biggest challenge for the group”, Cole said.
“The management team is focused on growing the business and new appointments at the operating board level have been made to strengthen the sales function and drive future growth initiatives.”
Chris Jagusz was appointed CEO nine months ago said that the “business did not sell enough” during the year to generate revenue growth.
It did get the Yorkshire and Humber Public Services Network framework contract, which is its “biggest revenue opportunity” in its history with revenue reaching a potential £20 million per annum.
