Thu, 24 Aug 2023 | BUSINESS NEWS
Redcentric, the Harrogate-based listed IT managed services provider (MSP) has reported a “significant increase” in revenue, following two years in which it has completed five acquisitions. In its full-year results, the firm has reported growth in total revenue, recurring revenue and adjusted EBITDA.
During the year to March 31 2023, total revenue increased 51.8 per cent from £93.3 million to £141.7 million, while recurring revenue grew 54.8 per cent from £83 million to £128.5 million. Adjusted EBITDA, meanwhile, increased slightly from £23.7 million to £24.5 million.
This growth came during a year in which the firm completed three acquisitions: 4D Data Centres, Sungard Consultancy and Sungard Data Centres. These deals followed the acquisitions of 7 Elements and Piksel that Redcentric completed during the previous year.
Redcentric’s acquisitions have added more than 600 new customers to its base, while its year end revenue run rate of £160 million represented a 75 per cent increase compared to FY21, the last full year in which there was no impact from acquisitions.
The company added that this acquisitive activity was also helping to drive organic growth, with positive net new business recorded in each of the last four quarters up to June 30 2023.
Commenting on the results, Redcentric Chief Executive Peter Brotherton said: "The integration of the five acquisitions undertaken in the last two financial years is now largely complete, with the savings pertaining to the remaining energy conservation measures and closure of the Harrogate Data Centre to be realised before the end of the current financial year.”
"The acquisitions have resulted in a significant increase in revenues and much improved organic growth. Improvements in profitability will follow in FY25 once the synergy and energy efficiency programmes have been completed and the much reduced electricity commodity prices take effect."
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