'We have refined our strategy': Redcentric is fully-focused on managed services provider business
Harrogate based Redcentric, the IT managed services provider, hopes to win more work in the health sector after it completed the sale of its eight data centres.
Michelle Senecal de Fonseca, the CEO of Redcentric, told The Yorkshire Post that Redcentric’s sales team had been re-aligned to pursue potential opportunities related to the new structures of ICBs - integrated care boards - in the UK.
She hoped Redcentric would win more work with the health sector in general, which has a large number of compliance requirements.
She also predicted that the costs of hardware and chips would remain high for the rest of the year, largely due to to the uncertainty caused by the war in the Middle East.
In a statement to accompany its results, Redcentric’s board said it was committed to delivering further shareholder returns as revenue stabilises as it delivered its latest full year results.
In the year ended March 31 2026, the group’s reported revenue was £132.0m, compared with £135.1m the year before.
The adjusted EBITDA (earnings before interest taxation depreciation and amortisation) was £17.4m, which is below the £18.8m recorded in the previous year.
The group also completed the sale of Redcentric Data Centres (RDC) in April for £124.9m.
In a statement, Redcentric said: “Trading since the year end has been in line with internal plans. The business has an encouraging pipeline and adjusted EBITDA is expected to be in line with current market expectations.”
Redcentric has 550 staff and the company confirmed there is the possibility of more jobs being created as revenue increases.
Commenting on the results, Ms Senecal de Fonseca, said: “Following the disposal of RDC, Redcentric is fully focused on growing its MSP (managed services provider) business.
"We have refined our go-to-market strategy and established a new business team to help realise our market opportunity.
"The factors weighing on reported revenue and historical ARR (annual recurring revenue) are easing. Underlying ARR increased marginally in FY26 (full year 2026), and we expect this to build through FY27 (full year 2027) to deliver stable reported revenue for the year against FY26.
"While complex solutions typically involve long lead times and sales cycles, our lead-generation efforts are beginning to build our pipeline of opportunities, and market dynamics are expected to support near-term demand.
"Our cost base is now right-sized to current revenue, and margins should improve in FY27 as the full-year impact of in-year savings comes through.
"Better use of our ERP (enterprise resource planning) system, continued solution-stack rationalisation and AI should drive further margin improvement, with adjusted EBITDA expected to be in line with current market expectations. Our financial position is strong, supported by our new banking facilities.
She added: “As revenue stabilises, growth becomes sustainable, profitability improves and free cash flow becomes more predictable, the board remains committed to further shareholder returns.
“Current FY27 (full year 2027) trading in the continuing MSP business is in line with plan, with the balance sheet strengthened and the group focused solely on growth and tangible investor returns.
"Despite a challenging MSP sector, we are confident in our product suite, our market position and our people, ensuring the foundations for growth and shareholder value creation are in place.”