Redcentric reveals latest financial year in trading update

A trading update for year ended 31 March 2026 (‘FY26’) totalled totalled  £132.1 million compared to £135.1million in the year to March 31 2025.

Recurring revenues remained high at around 88%, underpinning excellent earnings visibility, the company said.   Gross profit1 margin was 61.0% (FY25: 61.6%).

Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization for FY26 totalled c.£17.5 million, ahead of FY26 market expectations of £17.2 million.

RECOMMENDED READING:
Redcentric of Harrogate reports latest half-yearly results

IT firm Redcentric reports rising revenues and profits

The company says this  performance reflects strong traction in the second half and continued effective cost discipline. The second half also saw the company implement certain strategic investments designed to drive accelerated revenue growth and improved earnings from H2 FY27 and beyond.

 Whilst the sector remains highly competitive, as noted in the interim results, the Company remains focused on securing and maintaining long-term higher margin business with continued tight cost control, to ultimately drive higher quality of earnings.

Redcentric said its sale of its data centre business to Stellanor Datacenters Group Limited on April 30 2026 and the associated initial cash receipt of £115.4 million, strengthened the company’s cash position, net of borrowings to £77.9million as of May 29.

Redcentric says such ‘robust’ performance highlights it as a market-leader., with its board committed to expanding high-quality recurring revenue streams whilst maintaining disciplined cost management.

The recurring revenue model, lower capex requirements of MSP and improved cash conversion provide the Board with confidence in the medium to long term outlook of the business.

Michelle Senecal de Fonseca, CEO, said: “I am pleased to report that we have delivered Adjusted EBITDA ahead of expectations. This reflects 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 (the year starting from April 1 2026)  and beyond.”