Redcentric (LSE:RCN) reported full-year 2026 results broadly in line with market expectations, with revenue and adjusted EBITDA declining while underlying annual recurring revenue increased slightly.
Revenue fell 2.3% to £132 million, while adjusted EBITDA declined 7.4% to £17.4 million. Recurring revenue accounted for nearly 90% of total revenue, with underlying annual recurring revenue increasing 0.6%.
Profit before tax rose 10.5% during the year. The company also reported elevated leverage at the year end.
Redcentric Completes £124.9 Million Data Centre Disposal
Following the end of the financial year, Redcentric sold Redcentric Data Centres for £124.9 million, changing the group’s capital structure and leaving the company focused on its managed services operations.
Redcentric subsequently returned £90 million to shareholders through a tender offer and launched a £1.5 million share buyback programme.
The company also secured new revolving credit facilities of £30 million, together with an additional £10 million accordion facility. Following these transactions, Redcentric reported a lower adjusted net debt position.
Group Focuses Strategy on Managed Services
Following the disposal of its data centre subsidiary, Redcentric is operating as a focused managed services provider.
The company’s strategy includes changes to its go-to-market approach and the development of an artificial intelligence roadmap alongside its existing cloud, network, collaboration and other managed services.
Redcentric also said its capital allocation plans include progressive dividends and the potential use of opportunistic share buybacks.
About Redcentric
Redcentric is a UK-based IT managed services provider listed on AIM. The company supplies cloud, network, collaboration and related managed services to business and public-sector customers.
Following the disposal of Redcentric Data Centres, the group’s operations are focused on its managed services business.
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