MSP Redcentric’s sales and adjusted operating profit slip for the six months ending 30 September.
Total revenue slipped by 4.1 percent to £44.3 million compared with the same period last year while adjusted operating profit fell from £7.6 million to £7.4 million, a fall of 2.6 percent. Its adjusted basic earnings per share fell from 3.61p to 3.55p year-on-year, while recurring monthly revenue dropped from £41 million to £39.6 million and adjusted EBITDA decreased from £12.3 million to £11.9 million.
The outfit’s CEO Peter Brotherton said the business is still seeing “aftershocks” from the COVID-19 pandemic.
He insisted that the business is still “performing well”, pointing to the MSP’s improved sales and profits during the pandemic compared with before it.
“The business continues to perform well and is trading significantly ahead of the pre-Covid period. Throughout the period of the Covid-19 pandemic, we have grown revenues and increased profits substantially. The pandemic has presented many unprecedented challenges and we continue to see the aftershocks”, Brotherton said.
“The sales pipeline is slowly recovering, and the increasing number of customer interactions is encouraging. November 2021 is on target to be the best month for new sales orders this calendar year and we are hopeful that this is indicative of a return to more normalised trading levels. The company will continue to pursue acquisition opportunities for both scale and capability and the board expects the full-year results to be in line with its expectations.”
Redcentric announced it was acquiring Microsoft Azure and AWS partner Piksel in September, which the MSP claims will “significantly enhance” its cloud services proposition.
The company claims that £0.7 million of annualised cost savings have already been realised through the acquisition and further annualised savings of at least £0.4 million are to be realised for the next financial year.
