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Redcentric
(LSE:RCN)
Select Model
Select Model
Rating:45Neutral
Price Target:
124.00 p
▲(19.23% Upside)
Action:Reiterated
Date:10/25/25
The overall score is weighed down by weak technical indicators and an expensive valuation relative to fundamentals. While financial stability is improving and cash flow generation is above average, ongoing revenue declines and thin net margins pose major risks. Lack of positive price momentum or undervaluation suggests limited near-term upside.
Positive Factors
Recurring revenue model
Redcentric's core revenue streams are subscription-style managed services, connectivity and managed security sold under multi-month/ multi-year contracts. This creates durable revenue visibility, customer stickiness and predictable cash inflows that support budgeting, retention and investment over the next several quarters.
Negative Factors
Sharp revenue decline
A material top-line contraction (c. -31% and a recent year decline of 19.53%) erodes scale and operating leverage. Persistent revenue weakness pressures renewal economics, limits pricing power and makes it harder to cover fixed costs, requiring successful restructuring or sales recovery to restore sustainable growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue model
Redcentric's core revenue streams are subscription-style managed services, connectivity and managed security sold under multi-month/ multi-year contracts. This creates durable revenue visibility, customer stickiness and predictable cash inflows that support budgeting, retention and investment over the next several quarters.
Read all positive factors
Redcentric (RCN) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£105.61M
Dividend Yield0.15%
Average Volume (3M)95.18K
Price to Earnings (P/E)3.3
Beta (1Y)-0.12
Revenue Growth-31.46%
EPS Growth297.44%
CountryUK
Employees654
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.31
Shares Outstanding102,534,060
10 Day Avg. Volume47,600
30 Day Avg. Volume95,177
Financial Highlights & Ratios
PEG Ratio-0.01
Price to Book (P/B)0.15
Price to Sales (P/S)0.06
P/FCF Ratio0.39
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.06
Revenue Forecast (FY)£137.00M
Redcentric Business Overview & Revenue Model
Company Description
Redcentric plc delivers an extensive portfolio of managed information technology services to both public and private sector clients across the United Kingdom. Its core offerings span various critical areas, starting with networking solutions that ...
How the Company Makes Money
Redcentric primarily makes money by selling recurring managed services and connectivity to organisations, generally via multi‑month or multi‑year contracts billed on a subscription/usage basis. Key revenue streams typically include: (1) Managed IT...
Redcentric Financial Statement Overview
Summary
Income Statement
51
Neutral
Balance Sheet
54
Neutral
Cash Flow
61
Positive
| Breakdown | TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 115.11M | 135.14M | 163.15M | 141.67M | 93.33M | 91.40M |
| Gross Profit | 68.25M | 83.28M | 118.03M | 92.14M | 52.58M | 51.02M |
| EBITDA | 15.28M | 29.36M | 15.77M | 14.89M | 20.90M | 28.04M |
| Net Income | 2.46M | 3.49M | -3.44M | -9.25M | 6.94M | 9.01M |
Balance Sheet | ||||||
| Total Assets | 179.94M | 173.45M | 184.51M | 195.42M | 122.57M | 122.64M |
| Cash, Cash Equivalents and Short-Term Investments | 4.06M | 3.02M | 3.13M | 1.37M | 1.80M | 5.25M |
| Total Debt | 46.25M | 45.46M | 75.50M | 74.33M | 18.45M | 20.82M |
| Total Liabilities | 125.64M | 119.99M | 130.02M | 137.23M | 50.72M | 50.55M |
| Stockholders Equity | 54.30M | 53.45M | 54.48M | 58.19M | 71.85M | 72.09M |
Cash Flow | ||||||
| Free Cash Flow | 10.36M | 20.10M | 12.24M | 6.01M | 13.71M | 13.07M |
| Operating Cash Flow | 19.80M | 29.77M | 22.98M | 12.38M | 16.48M | 15.38M |
| Investing Cash Flow | -10.64M | -11.36M | -11.63M | -32.98M | -7.44M | -2.31M |
| Financing Cash Flow | -9.07M | -18.50M | -9.48M | 18.49M | -12.51M | -11.51M |
Redcentric Technical Analysis
Negative
104.00
Price Trends
111.40
Negative
118.67
Negative
119.04
Negative
Market Momentum
-1.89
Negative
42.51
Neutral
16.02
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RCN, the sentiment is Negative. The current price of 104 is below the 20-day moving average (MA) of 104.16, below the 50-day MA of 111.40, and below the 200-day MA of 119.04, indicating a bearish trend. The MACD of -1.89 indicates Negative momentum. The RSI at 42.51 is Neutral, neither overbought nor oversold. The STOCH value of 16.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:RCN.
Redcentric Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | £69.79M | 40.28 | 35.58% | 2.25% | 15.70% | -4.34% | |
69 Neutral | £64.19M | 34.68 | 12.27% | ― | 27.43% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | £114.79M | 45.88 | 4.84% | 9.35% | -25.95% | -83.91% | |
58 Neutral | £75.72M | -120.59 | -1.49% | 2.07% | 0.98% | 93.91% | |
49 Neutral | £18.36M | -16.49 | -8.28% | 7.06% | -13.26% | 78.47% | |
45 Neutral | £105.61M | 3.34 | 4.57% | 0.15% | -31.46% | 297.44% |
* Technology Sector Average
GB:RCN
Redcentric
102.00
-33.00
-24.44%
GB:TIA
IDE Group Holdings Plc
46.00
-29.00
-38.67%
GB:FDM
FDM Group (Holdings)
107.00
-6.66
-5.86%
GB:TRD
Triad Group plc
400.00
91.54
29.68%
GB:TPX
TPXimpact Holdings PLC
85.50
68.25
395.65%
GB:MTEC
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44.00
6.00
15.79%
Redcentric Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Redcentric Finalises Share Capital Restructure and Clarifies Voting Rights
Neutral
Jul 29, 2026
Redcentric plc has issued and allotted seven new ordinary shares to director Richard McGuire as part of a wider share capital restructure designed to make the total number of ordinary shares exactly divisible by 20. This small issuance forms part ...
Stock BuybackDelistings and Listing Changes
Redcentric Returns £90m via Oversubscribed Tender Offer and Restructures Share Capital
Positive
Jul 22, 2026
Redcentric has completed a heavily oversubscribed tender offer to buy back up to 56,250,000 ordinary shares at £1.60 per share, returning £90 million to shareholders and reducing its free float. Shareholders tendering within their basic ...
Business Operations and StrategyStock BuybackShareholder Meetings
Redcentric shareholders back £90m tender offer and expanded buyback plan
Positive
Jul 7, 2026
Redcentric has secured strong shareholder backing at its General Meeting in Harrogate, with four special resolutions overwhelmingly approved by poll. The measures centre on a tender offer of up to £90 million, supported by authorities for sig...
Business Operations and StrategyStock BuybackStock Split
Redcentric Completes Capital Reduction and Sets Tender Offer Timetable
Neutral
Jul 7, 2026
Redcentric has confirmed that its court-approved capital reduction is now effective, with no change to the number of shares admitted to trading. The move is part of a broader capital restructuring aimed at facilitating a tender offer and subsequen...
Business Operations and StrategyStock Buyback
Redcentric Wins Court Approval for Capital Reduction Ahead of £90m Tender Offer
Positive
Jul 2, 2026
Redcentric has secured court approval for a capital reduction, a key step enabling its previously announced plan to return up to £90 million in cash to shareholders via a tender offer. The reduction, which will not alter the number of shares ...
Business Operations and StrategyStock BuybackStock Split
Redcentric Launches £90m Tender Offer and Share Capital Restructure
Positive
Jun 19, 2026
Redcentric has unveiled plans for a tender offer of up to £90 million, allowing shareholders to sell shares at £1.60 each, a roughly 30.9% premium to the prior closing price. Investors will have a basic entitlement to tender about 35.3% ...
Business Operations and StrategyExecutive/Board Changes
Redcentric Names Veteran Deal-Maker Tim Sykes as CFO After Data Centre Sale
Positive
Jun 1, 2026
Redcentric has appointed Tim Sykes as its new Chief Financial Officer and Executive Director with immediate effect, bringing more than 30 years of financial experience, including a long tenure at Proactis and a track record in MA, growth execution...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Redcentric Beats EBITDA Expectations and Emerges in Net Cash After Data Centre Sale
Positive
Jun 1, 2026
Redcentric reported that its managed services business generated about £132.1 million of revenue in the year to 31 March 2026, with recurring income at roughly 88%, supporting strong earnings visibility. Adjusted EBITDA from the MSP unit came...
Business Operations and StrategyStock BuybackM&A TransactionsShareholder Meetings
Redcentric Wins Shareholder Backing for Capital Reduction After Data Centre Sale
Positive
May 13, 2026
Redcentric shareholders have overwhelmingly approved a special resolution to cancel the company’s share premium account, creating additional distributable reserves to facilitate further returns to investors while preserving balance sheet str...
Private Placements and FinancingRegulatory Filings and Compliance
Redcentric Issues New Shares Following Employee Option Exercise
Neutral
May 12, 2026
Redcentric has issued 1,267 new ordinary shares to satisfy the exercise of employee share options, with admission of the new shares to trading on AIM expected on or around 18 May 2026. Following the admission, the company’s issued share capi...
Business Operations and StrategyStock BuybackM&A Transactions
Redcentric Sells Data Centre Arm to Fund Major Capital Return and Cut Debt
Positive
May 1, 2026
Redcentric has completed the sale of its entire data centre business, Redcentric Data Centres Limited, to Stellanor Datacenters Group for an estimated £122.85 million, following satisfaction of all conditions. The disposal completes the strat...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.