The Redcentric PLC Board has reviewed the financial performance of the business and has decided to maintain an interim dividend payment of 1.2p per share, which will be paid on 6 January 2022 to shareholders on the register at the close of business on 25 November 2021. The continuation of dividend payments whilst pursuing an acquisition strategy demonstrates the Board's confidence in the Company and the strong cash generative nature of the business.
Other financial highlights include:
Total revenue was £44.3m (H1-21: £46.2m) with recurring revenue of £39.6m (H1-21: 41.0m). Adjusting for the sale of assets relating to the Company's contract with EDF (the "EDF Contract") which was completed on 31 March 2021, total revenue declined by 3.1% and recurring revenue declined by 2.4%.
Total revenue for the six-month period is now ahead of pre Covid-19 levels by 3.7% (H1-20: £42.7m H1-21 £44.3m) after adjusting for the EDF Contract.
The proportion of recurring revenue increased slightly to 89.4% of total revenue (H1-21: 88.7%).
Adjusted operating expenditure reduced by £0.6m (3.7%) to £15.8m (H1-21: £16.4m) reflecting a continued focus on the cost base in addition to the annualised impact of cost benefits realised through the operational efficiencies over the last two financial years.
Adjusted EBITDA was £11.9m (H1-21: £12.3m) and adjusted EBITDA margins increased marginally to 26.8% (H1-21: 26.5%). Adjusting for the sale of assets relating to the EDF Contract which was completed on 31 March 2021 adjusted EBITDA for H1-22 was in line with the prior year at £11.9m.
Adjusted operating profit decreased by 2.6% to £7.4m (H1-21: £7.6m) with operating margin improving to 16.7% (H1-21: 16.4%).
After accounting for exceptional items of £0.7m (H1-21: £1.1m) and share-based payment costs of £0.3m (H1-21: £0.3m), reported operating profit was 7.8% higher at £3.3m (H1-21: £3.1m).
Net debt reduced by £0.2m since 31 March 2021 to £15.4m, reflecting:
o Operating cash flows of £10.0m (84% operating cash conversion);
o the net cash impact of the acquisition of Piksel in the period of £8.4m; and
o the receipt of £5.8m consideration resulting from the sale of assets relating to the EDF Contract which completed on 31 March 2021.
Excluding leases previously classified as operating leases under IAS17 net debt was £0.4m (31 March 2021: £1.0m cash).
