Redcentric (AIM:RCN) told investors that earnings (adjusted EBITDA) for its MSP business in the year to 31 March totalled c.£17.5 million, ahead of FY26 market expectations of £17.2 million.
Revenues for the MSP business, which acts as an outsourced IT department for its clients, were c.£132.1 million (FY25: £135.1 million), recurring revenues remained c.88% and gross profit margin was c.61.0% (FY25: 61.6%), with strong second-half traction and tight cost discipline underpinning performance.
Strategic investments were made to accelerate revenue and earnings from H2 FY27, the IT company added in a trading update for the year ended 31 March.
Group adjusted net debt at 31 March reduced to c.£36.8 million (FY25: £41.9 million), and following the disposal of the data centre to Stellanor Datacenters Group on 30 April, for an initial cash receipt of £115.4 million.
"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," said Michelle Senecal de Fonseca, CEO.
Redcentric's net cash position was £77.9 million as at 29 May.
