The potential sale of managed service provider Redcentric is now off the table, said the firm, as it announced a positive set of results for the first-half ended 30 September.
The company admitted it was exploring a sale last September after press speculation, but now says there were no “fully funded” offers from potential buyers, which included Six Degrees Group and KCOM-owner Macquarie Group.
Redcentric says it will now concentrate on organic growth and perhaps potential acquisitions of its own. The firm has announced that first-half sales increased 7% year-on-year to £46.2m, with adjusted EBITDA up 19% to £12.3m.
These results are a big step in the right direction after a FY20 that saw revenue slump 6% annually.
Peter Brotherton, chief executive officer of Redcentric, said: “The business has performed extremely well over the first six months of the year. The results reflect considerable progress and position the business well for the future and the next stage of its development.”
He said recurring revenues accounted for 89% of total revenues, “reflecting growth in the public sector”. Whilst the public sector was a “driver for growth”, he said, the private sector continues to account for most of the business’ revenue. Brotherton said 82% of total recurring revenues were derived from the private sector and 18% from the public sector.
