IT firm in Harrogate Redcentric is expected to post revenue of £46.4m

IT firm Redcentric said that trading for the six months ended September 30, 2021 is expected to be in line with the board's expectations, with revenues of £46.4m and adjusted EBITDA of £12m.

The Harrogate-based firm had minimal net debt of £400,000 at September 30, 2021, compared to net cash of £1m on March 31, 2021, excluding supplier loans and leases.

It added that the strong position reflects a final dividend payment of £3.7m, the disposal of the non-core EDF contract for £5.8m and the acquisition of Piksel Industry Solutions for £9.5m.

Redcentric said: "The integration of Piksel IS is progressing well, and we are on target to have the business fully integrated by the end of the current financial year.

"Good progress has been made in realising synergies and we are confident of achieving cost savings of at least £1.1m.

"The acquisition has been well received by both companies' customer bases and we are already in active discussions regarding several cross-sell opportunities."

The Harrogate-based business added: "We expect trading for the year ending March 31, 2022 to be in line with the board's expectations, including strong cash generation consistent with previous guidance.

"This is despite a continued lack of largescale IT projects and supply chain issues remaining a feature of the sector.

"In addition, several of our electricity supply contracts fell due for renewal during the ongoing UK energy crisis and this will add £500,000 of costs to second half of the financial year 2022 and at least £500,000 of costs to the first half of the financial year 2023.

"We continue to make progress on mergers and acquisition prospecting, with several active conversations underway, a growing pipeline of potential targets and a strong balance sheet."

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