Redcentric (RCN)

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Redcentric RCN Logo

A leading UK IT managed services provider.

5-Oct-2017

Appointment of CEO and Trading Update (for the 6 months to end September 2017) – New CEO announced and trading confirmed as “in-line with management expectations”. Net debt is down to £33.3m (from £39.5m according to Stockopedia), which is ahead of management’s expectations.

This update may help the depressed share price here somewhat, not tempting enough for me though.

29-Nov-2017 – 87.5p – £130.3m – PER 16

Interim Results For The 6 Months To End September 2017 – Headline is “Solid first six months withstrong operating cash flows and a reduction in net debt”. Solid here means Revenue and Profits are flat and the Net Debt has been reduced a whopping 2.6%. The CEO comments “The issues surrounding the accounting misstatements have  been addressed and so my focus is on providing the business with a clear strategy to enable the business to grow”.

It’s too early – I’m not yet convinced.

4-Oct-2018 – 89p – £132.7m – PER 15.8

Trading Update For The 6 Months To End September 2018 – In-line with Net Debt down 20% or so to £22.6m.

Some attraction here but eyes on a full set of results needed – I remain Neutral for now.

22-Nov-2018 – 77.5p – £115.6m – PER 13.1

Results For The 6 Months To End September 2018 – Revenue down -7.6%, Loss of -£0.1m (break-even last time). A 0.4p Interim Dividend has been reinstated.

I am Neutral and cannot get excited here at present.

15-Apr-2019 – 78p – £116m – PER 14.6

Trading Update For The 12 Months To End March 2019 – In-line with Net Debt down from £27.6m to £17.6m.

Could be value here after being beaten up this past couple of years. Tempting enough to go on the Watchlist.

25-Jun-2019 – 80p – £120m – PER 12.7

Results For The 12 Months To End March 2019 – Revenue down from £100m to £93.3m (85% is recurring), EBITDA is down, EPS is down with Net Debt down from £27.7m to £17.6m, Buy Back of up to 5% proposed.

Could still be value here after being beaten up this past couple of years although I am not so sure just yet.

9-Oct-2019 – 86p – £128m – PER 17

Trading Update For The 6 Months To End September 2019 – H1 in-line, no mention of FY expectations, remains focused.

Still interested in seeing FY actuals here but am not tempted ahead of that.

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