Redcentric (AIM:RCN) cracking results and magnificent cash flow
The highly regarded IT managed services provider has delivered excellent interims, broadly in line with expectations, with a meaningful rise in earnings per share and positive outlook statement; nothing less was expected given the seemingly punchy valuation but this business has evident attractions, notably the cash generation.
Redcentric is a leading UK IT managed services provider that offers a range of IT and Cloud services designed to support organisations in their journey from traditional infrastructure to the Cloud and hybrid combinations in between. Redcentric owns and operates five secure data centres with an estate in excess of 1200 racks. It also operates its own fibre Metropolitan Area Networks. This infrastructure collectively provides coverage to over 99% of the UK. Revenue for the 6 months to 30th September was up 15% to £54.0m including 8% organic growth, with the all-important recurring revenue up 18% (12% organic) to £43.9m.…