Source - SMW
Redcentric said its board remains confident in the outlook for the business and expects to deliver results in line with its expectations for the year. 

"Through the first half of this year, Redcentric's growth pattern has been similar to previously, with upper single digit organic growth in recurring revenues being augmented with acquisitions to deliver low double digit headline recurring revenue growth," the company said. 

"This has been offset by the planned continued reduction in low margin product sales. 

"The realisation of synergies from prior acquisitions and a beneficial shift in the revenue mix have helped to drive a mid-teens percentage increase in EBITDA.

"Cash generation has improved during the period with a corresponding reduction in debtor days. Net debt is expected to have fallen from 1.0x EBITDA at 31 March 2016 to under 0.8x annualised adjusted EBITDA at the half year, reflecting stronger underlying cash-flow generation and growth in EBITDA. 

"Including the proceeds of the sale of the Cambridge network announced and received on 26 September 2016, net debt is expected to be around 0.6x annualised adjusted EBITDA at the half year."

Redcentric is expecting to report results for the six months to 30 September on 14 November 2016.



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