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Redcentric

November 2016

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • RCN
  • Price:
  • 150p
Ahead of reporting H1 results on 14 November, Redcentric said that it has continued to see good organic growth with a mid-teens revenue growth in its core recurring revenue base. Separately, it announced the sale of the fibre networks in Cambridge, Southampton and Portsmouth (a legacy of its Redstone days - it is no longer digging up roads) for £5m to Cityfibre (CITY; 54.5p). At the same time it signed a 10 year network access agreement and the transaction is earnings neutral. This leaves it concentrating on its IT services side whilst also reducing debt to c£16m or 0.6x annualised EBITDA.Numis forecasts eps of 10.9p for the year to March, lifting to 12.1p next year. Strong hold. ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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