Redcentric's CEO Chris Jagusz has left the company after continuing poor financial results at the MSP. The firm has just posted a set of figures that did not live up to expectations, and they follow a poor second half performamce as part of FY18.
For H119, there was a further decline in revenue, so CFO Peter Brotherton has assumed the CEO role until a replacement for Jagusz can be found. For the six months ended 30 September, Redcentric sales fell by 7.6% year-on-year to £47.5m. In addition, recurring revenue tumbled 7.4% to £41.3m. While a £2.1m slump in gross profits was partially offset by operating costs savings, adjusted EBITDA shrank 11% year-on-year to £8.1m.
The only good news was that net debt was reduced by £5.1m to £22.6m. Top line performance partly suffered from slower than expected uptake of Health & Social Care Network (HSCN) contracts in the UK.
The company posted a £2.9m loss in FY17, as a result of £5.5m in one-off charges and auditing fees in connection with the associated FY16 accounting and results restatement scandal.
