Redcentric, an IT managed-services provider, announced a pretax loss of £12.5 million ($15.9 million) for the fiscal year ended March 31, 2023. This marks a significant swing from the £5.5 million profit reported in fiscal 2022. The company attributes this loss to a more than doubling of operating expenses, which rose from £53.0 million to £109.9 million compared to the previous year.
Despite the loss, Redcentric experienced a notable increase in revenue, with figures jumping from £93.3 million to £141.7 million. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) also saw a modest rise of 3.3% to £24.5 million.
Redcentric has identified recent acquisitions as a contributing factor to its revenue growth. The company expects these acquisitions to have a more pronounced impact in fiscal 2025, following the completion of integration programs. Additionally, Redcentric has taken proactive measures to safeguard against potential increases in electricity commodity prices in fiscal 2024 and position itself to take advantage of a favorable energy market in the future.
In light of these financial results, Redcentric’s board has declared a final dividend of 2.4 pence per share, resulting in a total dividend payout of 3.6 pence per share, consistent with the previous year.
