Managed services specialist Redcentric’s CEO has fallen on his sword after a disappointing first half of the year.
Chris Jagusz has resigned from the Board and as Chief Executive with Peter Brotherton, CFO assuming the leadership for now.
What led to that decision were the numbers for the first six months to 30 September, which saw revenues drop by 7.6 percent year on year to £47.5 million and worryingly for an MSP the recurring monthly revenue slipped by 7.4 percent to £41.3 million.
Gross profits declined by £2.1 million, which would have been worse if the firm had not been cost cutting like a mad thing.
Redcentric chairman Chris Cole said that the results announcement, whilst showing Redcentric’s resilience, does not demonstrate progress with regard to sales, delivery and execution.
“The Board has therefore decided that Redcentric’s growth ambitions would be better served with a change of leadership. We have therefore taken the decision that Chris Jagusz will leave us forthwith. We would like to thank Chris for his efforts”, Cole said.
“During the period Redcentric has made strong progress with its programme of driving operational efficiencies, cost control and cash discipline. This work has led to a leaner, more efficient business and one that is able to respond more quickly in a dynamic industry. Despite these positives, top-line revenue performance has been disappointing, and we have taken action to address this and return the business to organic revenue growth,” he added.
Redcentric managed to renew and extend some major customer contracts to 2021 and beyond and launched its managed Azure services offering during the period.
