IT services provider Redcentric reported a strong financial performance for its financial year, which ended 31 March 2024, as the group’s CEO prepared to step down from the group.
Total revenue increased by 15.2 per cent to £163.2m, while recurring revenue grew by over 16 per cent to £149.1m. Recurring revenue has grown to over 91 per cent of its total revenue.
Gross profit rose by 17 per cent to £118m, while adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) was up by 15.6 per cent to £28.3m.
Redcentric’s adjusted operating profit increased by nearly 12 per cent to £9.7m, while the company significantly reduced its reported loss before tax by £7.8m to £4.7m.
CEO Peter Brotherton said: “2024 was a very productive year with all the original integration programmes completed, generating cost savings either in line or slightly ahead of our expectations.”
In major leadership development, Brotherton announced his retirement. He has led the company since November 2016 and said he would step down once a suitable has been is found.
“The business is now in a very different place to when I joined in November 2016,” Brotherton said. “All of the historical issues have been overcome, and the acquisitions undertaken in 2022 and 2023 have significantly increased the scale and capability of the business.”
Looking ahead, Brotherton said he expected revenue and profit for the year ahead to be double their pre-acquisition levels, positioning Redcentric for sustained growth.