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Redcentric PLC on Thursday said pretax profit increased in the first half of its financial year, due to increased sales from three acquisitions it made in the half year.
The North Yorkshire, England-based cloud and data connectivity provider reported a pretax profit of £4.1 million in the six months that ended September 30, up by 38% from £3.0 million a year before.
The acquisitions Redcentric made in the half year include three data centres from Sungard Availability Services Ltd, the consulting business of Sungard, and the entire share capital of 4D Data Centres Ltd.
Redcentric’s revenue increased by 39% to £61.5 million from £44.3 million, and earnings before interest, tax, depreciation, and amortisation grew 51% to £16.2 million from £10.7 million in the prior-year.
Adjusted Ebitda was down slightly at £11.7 million from £11.9 million, which Redcentric said is because of its acquisition of the data centres from Sungard, which were loss making prior to the takeover.
Operating expenditure increased 59% to £38.3 million from £24.1 million following all acquisitions completed to date. Employee costs increased by 72% due to the increased headcount in the group, network and equipment costs increased by 61%, and data centre costs multiplied due to increased electricity unit costs and underlying operating costs.
Redcentric maintains an interim dividend payment of 1.2p per share.
Looking ahead, Redcentric said it will focus on completing the integration of the acquisitions in the second half of the year, extract cost synergies, and implement energy efficiency measures across the Sungard data centres.
Redcentric added that it is confident in achieving organic growth with the recently enhanced sales team, the increased breadth of products and the enlarged customer base.
Redcentric shares were up 5.2% to 113.38 pence on Thursday morning in London.
By Jaskeet Briah, Alliance News reporter
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