TipRanks
Go Ultimate55% OFF

Redcentric (RCN) AI Stock Analysis

GB:RCN

Redcentric

(LSE:RCN)

Select Model
Rating:70Outperform
Price Target:GBX 101.00â–²(12.85% Upside)
Action:upgraded
Date:10/01/26

The overall score is driven primarily by improving but still volatile financial performance, with stronger cash generation and a cleaner balance sheet supporting the story, while a very low P/E-based valuation adds upside potential but is offset by weak, oversold technicals that point to ongoing share-price pressure until the trend stabilizes.

Positive Factors
Resilient Cash GenerationConsistently positive operating and free cash flow, including in loss-making years, indicates the business can generate liquidity through weaker earnings periods. The sharp 2026 free-cash-flow acceleration further supports funding capacity and resilience over the coming quarters.
Negative Factors
Uneven Revenue TrendThe pattern of strong growth, followed by contraction and then recovery, shows that demand and expansion are not consistently predictable. Uneven revenue progression can make planning harder and may limit operating leverage if growth does not remain sustained.

Redcentric (RCN) vs. iShares MSCI United Kingdom ETF (EWC)

-30%-20%-10%0%10%20%30%GB:RCN-25.42%EWC+21.27%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
GBP 90.89M
Dividend Yield
―
Average Volume (3M)
159.30K
Price to Earnings (P/E)
2.2
Beta (1Y)
-0.12
Revenue Growth
-2.33%
EPS Growth
244.80%
Country
UK
Employees
627
Sector
Technology
Sector Strength
61
Industry
Information Technology Services

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 inc...

How the Company Makes Money

Redcentric makes money primarily by selling recurring managed services and connectivity contracts to organisations, typically under multi-month or multi-year agreements. Key revenue streams generally include: (1) Managed IT and cloud services—monthly...

Redcentric Financial Statement Overview

Summary

Financial performance is solid but not yet top tier, with revenue growth that has recently softened, margins recovering from prior losses to high single-digit levels, a materially de-risked balance sheet, and consistently positive, growing free cash flow, all offset by a history of volatility in earnings, leverage, and cash coverage.

Income Statement

68Positive

Balance Sheet

75Positive

Cash Flow

78Positive
Financial statement breakdown
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue131.99M131.99M135.14M163.15M141.67M93.33M
Gross Profit76.87M78.39M83.28M118.03M92.14M52.58M
EBITDA14.53M19.92M29.36M29.55M14.89M20.90M
Net Income12.12M12.12M3.49M-3.44M-9.25M6.94M
Balance Sheet
Total Assets196.68M196.68M173.45M184.51M195.42M122.57M
Cash, Cash Equivalents and Short-Term Investments4.71M4.71M3.02M3.13M1.37M1.80M
Total Debt43.40M43.40M45.46M75.50M74.33M18.45M
Total Liabilities131.91M131.91M119.99M130.02M137.23M50.72M
Stockholders Equity64.78M64.78M53.45M54.48M58.19M71.85M
Cash Flow
Free Cash Flow15.45M18.52M20.10M12.24M6.01M13.71M
Operating Cash Flow22.11M25.18M29.77M22.98M12.38M16.48M
Investing Cash Flow-7.11M-7.10M-11.36M-11.63M-32.98M-7.44M
Financing Cash Flow-13.25M-16.32M-18.50M-9.48M18.49M-12.51M

Redcentric Technical Analysis

Technical Analysis SentimentNeutral
Last Price89.50

Price Trends

50DMA94.28Negative
100DMA105.26Negative
200DMA113.28Negative

Market Momentum

MACD-1.86Negative
RSI49.96Neutral
STOCH69.43Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RCN, the sentiment is Neutral. The current price of 89.50 is above the 20-day moving average (MA) of 87.12, below the 50-day MA of 94.28, and below the 200-day MA of 113.28, indicating a neutral trend. The MACD of -1.86 indicates Negative momentum. The RSI at 49.96 is Neutral, neither overbought nor oversold. The STOCH value of 69.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:RCN.

Redcentric Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

GB:RCN against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
GB:TRDGB:TRD73OutperformGBP 67.17M38.7735.58%2.34%15.70%-4.34%
GB:MTECGB:MTEC72OutperformGBP 82.11M23.6120.21%―26.81%150.54%
GB:RCNGB:RCN70OutperformGBP 90.84M2.1820.35%―-2.33%244.80%
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%
GB:FDMGB:FDM59NeutralGBP 113.91M45.534.84%6.74%-25.95%-83.91%
GB:TPXGB:TPX52NeutralGBP 96.26M-152.94-1.49%―0.98%93.91%
GB:TIAGB:TIA49NeutralGBP 14.97M-13.44-8.28%―-13.26%78.47%

* Technology Sector Average

Performance Comparison

0%200%400%600%GB:RCNGB:TIAGB:FDMGB:TRDGB:TPXGB:MTECDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
GB:RCN and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
GB:RCNRedcentric plc89.50-30.50-25.42%
GB:TIAIDE Group Holdings Plc37.50-37.50-50.00%
GB:FDMFDM Group (Holdings)103.80-12.05-10.40%
GB:TRDTriad Group plc385.0097.9534.12%
GB:TPXTPXimpact Holdings PLC104.0089.75629.82%
GB:MTECMade Tech Group PLC55.0023.0071.88%

Redcentric Corporate Events

Stock BuybackRegulatory Filings and Compliance

Redcentric Advances Share Buyback, Tightens Voting Share Base

Positive
Sep 29, 2026

Redcentric plc has continued its previously announced share buyback programme with the repurchase of 110,000 ordinary shares on 28 September 2026, at a price of 94.64 pence per share, to be held in treasury. The move maintains the company’s iss...

Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings

Redcentric Publishes 2026 Annual Report and Sets AGM Date

Neutral
Sep 29, 2026

Redcentric plc has published its Annual Report and Accounts for the year ended 31 March 2026, which are now available on the company’s website for shareholders and other stakeholders. The notice of the company’s Annual General Meeting has...

Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A TransactionsPrivate Placements and Financing

Redcentric Reshapes Balance Sheet and Strategy After Solid FY26

Positive
Sep 28, 2026

Redcentric reported full-year 2026 results broadly in line with market expectations, with revenue dipping 2.3% to £132m and adjusted EBITDA down 7.4% to £17.4m, while recurring revenue remained high at nearly 90% and underlying annual recur...

Business Operations and StrategyStock Buyback

Redcentric Advances Share Buyback, Tightens Free Float

Positive
Sep 25, 2026

Redcentric plc has continued to execute its previously announced share buyback programme with the repurchase of 80,000 ordinary shares on 24 September 2026 at a price of 94.89 pence per share, with all shares to be held in Treasury. Following this tr...

Stock BuybackRegulatory Filings and Compliance

Redcentric Advances Share Buyback, Updates Voting Share Capital

Positive
Sep 24, 2026

Redcentric plc has repurchased 80,000 ordinary shares at 95.94 pence each under its ongoing share buyback programme, with the shares to be held in treasury. Following this transaction, the company’s issued share capital remains 103,071,740 shar...

Business Operations and StrategyStock Buyback

Redcentric Continues Share Buyback, Holding Additional Shares in Treasury

Positive
Sep 23, 2026

Redcentric plc has continued its previously announced share buyback programme by repurchasing 35,029 ordinary shares on 22 September 2026 at a price of 97.35 pence per share, with the shares to be held in treasury. Following this transaction, the com...

Business Operations and StrategyStock Buyback

Redcentric Expands Treasury Stock Through Ongoing Share Buyback

Positive
Sep 22, 2026

Redcentric plc has continued its previously announced share buyback programme, repurchasing 49,739 ordinary shares at a price of 97.90 pence each on 21 September 2026 to be held in treasury. The transaction, executed via its broker Cavendish Capital...

Business Operations and StrategyStock Buyback

Redcentric Adds to Treasury Stock in Ongoing Share Buyback

Neutral
Sep 21, 2026

Redcentric plc has continued its previously announced share buyback programme with the repurchase of 59,261 ordinary shares on 18 September 2026 at a price of 98 pence per share, with all shares to be held in treasury. The transaction was executed th...

Business Operations and StrategyFinancial Disclosures

Redcentric schedules final results and widens investor outreach

Neutral
Sep 21, 2026

Redcentric plc has announced it will publish its audited final results for the year ended 31 March 2026 on 28 September 2026. The timing of the release sets the stage for the market to assess the Group’s recent performance and strategic progres...

Business Operations and StrategyFinancial DisclosuresM&A Transactions

Redcentric Secures Higher-Than-Expected Proceeds from Data Centre Sale

Positive
Sep 18, 2026

Redcentric plc, a UK IT managed services specialist, has completed the disposal of its subsidiary Redcentric Data Centres Limited to Stellanor Datacenters Group Limited. The transaction, originally expected to yield £122.85 million in cash, resu...

Business Operations and StrategyStock BuybackRegulatory Filings and Compliance

Redcentric Adds to Treasury Stock with Latest Share Buyback

Positive
Sep 18, 2026

Redcentric plc has repurchased 70,000 ordinary shares at 98.80p each under its ongoing share buyback programme, with the shares to be held in treasury. Following this transaction, the company’s issued share capital remains 103,071,740 shares, o...

Business Operations and StrategyStock BuybackRegulatory Filings and Compliance

Redcentric Tightens Free Float with Further Treasury Share Buyback

Positive
Sep 16, 2026

Redcentric plc has continued its share buyback programme with the repurchase of 65,000 ordinary shares on 15 September 2026 at a price of 99.98 pence per share, to be held in treasury. The transaction was executed via its broker, Cavendish Capital Ma...

Business Operations and StrategyStock Buyback

Redcentric adds to Treasury stock as share buyback programme continues

Positive
Sep 15, 2026

Redcentric plc has continued its previously announced share buyback programme with the repurchase of 21,100 ordinary shares on 14 September 2026 at a price of 99.15 pence per share, with the shares to be held in Treasury. Following this transaction,...

Business Operations and StrategyStock Buyback

Redcentric Advances Share Buyback, Tightens Voting Share Base

Positive
Sep 14, 2026

Redcentric plc has continued to execute its share buyback programme, repurchasing 13,543 ordinary shares on 11 September 2026 at a price of 99.40p per share, to be held in treasury. Following this transaction, the company’s issued share capital...

Business Operations and StrategyStock Buyback

Redcentric Adds to Treasury Stock Under Ongoing Share Buyback Programme

Positive
Sep 11, 2026

Redcentric plc has continued to execute its previously announced share buyback programme with the purchase of 37,512 ordinary shares on 10 September 2026 at a price of 99.68 pence per share, to be held in treasury. The transaction leaves the company&...

Business Operations and StrategyStock BuybackRegulatory Filings and Compliance

Redcentric Boosts Treasury Stock with Latest Share Buyback

Positive
Sep 10, 2026

Redcentric plc, a leading UK IT managed services provider listed on AIM, delivers outsourced IT infrastructure, connectivity, and cloud solutions to corporate and public sector clients. Its recurring service-based business model and role in UK networ...

Business Operations and StrategyStock BuybackRegulatory Filings and Compliance

Redcentric Continues Treasury Share Buybacks Under Capital Management Programme

Positive
Sep 9, 2026

Redcentric plc has continued to execute its previously announced share buyback programme, repurchasing 25,387 ordinary shares on 8 September 2026 at a price of 101.49 pence per share, with all shares to be held in treasury. The transaction leaves the...

Business Operations and StrategyStock BuybackRegulatory Filings and Compliance

Redcentric Buys Back Shares, Tightens Voting Capital Base

Positive
Sep 7, 2026

Redcentric plc has continued its previously announced share buyback programme by purchasing 50,000 ordinary shares on 4 September 2026 at a price of 102.85p per share, with all shares to be held in treasury. Following this transaction, the company&#8...

Business Operations and StrategyStock Buyback

Redcentric Advances Share Buyback, Lifting Treasury Holdings

Positive
Sep 4, 2026

Redcentric plc has continued to execute its previously announced share buyback programme with the repurchase of 50,000 ordinary shares at 102 pence each on 3 September 2026. These shares will be held in treasury, and the transaction was carried out t...

Business Operations and StrategyStock Buyback

Redcentric Adds to Treasury Stock in Ongoing Share Buyback Programme

Positive
Sep 3, 2026

Redcentric plc has repurchased 42,105 ordinary shares at a price of 103.12 pence per share under its share buyback programme announced last month. The shares will be held in treasury, and the transaction underscores the company’s ongoing capita...

Stock BuybackRegulatory Filings and Compliance

Redcentric Advances Share Buyback, Adjusts Voting Share Capital

Positive
Aug 27, 2026

Redcentric has continued to execute its previously announced share buyback programme with the purchase of 32,239 ordinary shares on 26 August 2026, at a price of 102.89 pence per share, to be held in treasury. Following this transaction, the company&...

Business Operations and StrategyStock BuybackRegulatory Filings and Compliance

Redcentric Advances Share Buyback, Updates Voting Capital

Positive
Aug 26, 2026

Redcentric plc has continued its previously announced share buyback programme with the repurchase of 48,730 ordinary shares on 25 August 2026 at a price of 105.10 pence per share. These shares will be held in Treasury, reflecting the group’s on...

Business Operations and StrategyStock BuybackRegulatory Filings and Compliance

Redcentric Continues Share Buyback, Reducing Free Float

Positive
Aug 25, 2026

Redcentric plc has continued its previously announced share buyback programme with the repurchase of 45,296 ordinary shares on 24 August 2026 at a price of 106.39 pence per share, which will be held in Treasury. Following this transaction, the compan...

Business Operations and StrategyStock BuybackRegulatory Filings and Compliance

Redcentric Continues Share Buyback, Updates Voting Share Capital

Positive
Aug 24, 2026

Redcentric plc has continued executing its previously announced share buyback programme, repurchasing 46,752 ordinary shares at a price of 107.64p per share on 21 August 2026, with the shares to be held in treasury. Following this transaction, the co...

Stock BuybackRegulatory Filings and Compliance

Redcentric Advances Share Buyback, Updates Voting Share Capital

Positive
Aug 21, 2026

Redcentric plc has continued to execute its recently announced share buyback programme, purchasing 48,179 ordinary shares on 20 August 2026 at a price of 108.08p per share, to be held in treasury. Following this transaction, the company’s issue...

Other

Redcentric clarifies director‑linked share transfers and confirms Kestrel’s near‑20% stake

Neutral
Aug 20, 2026

Redcentric plc has disclosed changes in the shareholdings linked to non‑executive director Oliver Scott, following the transfer of 65,480 ordinary shares out of Kestrel Partners LLP’s discretionary management as part of client portfolio r...

Business Operations and StrategyStock Buyback

Redcentric Advances Share Buyback as Treasury Holdings Rise

Positive
Aug 20, 2026

Redcentric plc has continued execution of its share buyback programme, purchasing 46,524 ordinary shares on 19 August 2026 at a price of 108.96 pence per share, with all shares to be held in treasury. The transaction was carried out through its broke...

Business Operations and StrategyStock Buyback

Redcentric Adds to Treasury Stock with Latest Share Buyback

Positive
Aug 19, 2026

Redcentric plc has repurchased 44,870 ordinary shares at 107.45p each under its recently announced share buyback programme, and these shares will be held in Treasury. Following this transaction, the company’s issued share capital remains 103,07...

Business Operations and StrategyStock Buyback

Redcentric Advances Share Buyback, Tightens Voting Share Capital

Positive
Aug 18, 2026

Redcentric plc has continued to execute its previously announced share buyback programme, purchasing 44,797 ordinary shares on 17 August 2026 at a price of 107.70 pence per share to be held in treasury. Following this transaction, the company’s...

Business Operations and StrategyStock Buyback

Redcentric Advances Share Buyback, Adjusts Voting Share Capital

Positive
Aug 14, 2026

Redcentric has continued to execute its recently announced share buyback programme, purchasing 24,097 ordinary shares on 13 August 2026 at a price of 103.49 pence per share to be held in treasury. Following this transaction, the company’s issue...

Business Operations and StrategyStock Buyback

Redcentric Advances Treasury Share Buyback Under August Programme

Positive
Aug 12, 2026

Redcentric has executed a share buyback transaction as part of the programme announced on 11 August 2026, repurchasing 15,807 ordinary shares at a price of 98.4 pence per share to be held in treasury. The deal was carried out through its broker, Cave...

Business Operations and StrategyRegulatory Filings and Compliance

Redcentric Updates Share Capital Following Employee Option Exercise

Neutral
Aug 11, 2026

Redcentric plc has confirmed the exercise of employee share options over 5,601 ordinary shares under its 2014 Save As You Earn Option Plan, reflecting ongoing participation in its employee incentivisation scheme. To meet this exercise, the company tr...

Business Operations and StrategyStock BuybackDividendsM&A Transactions

Redcentric Launches £1.5m Buyback as Data Centre Sale Nears Completion

Positive
Aug 11, 2026

Redcentric plc has launched a share buyback programme of up to £1.5 million, to be conducted in the open market and independently managed by its broker Cavendish Capital Markets. The repurchased shares will be held in treasury, and given the lim...

Stock BuybackRegulatory Filings and Compliance

Redcentric Updates Treasury Holdings and Voting Rights After Share Restructure

Neutral
Aug 6, 2026

Redcentric plc has completed the purchase of 26,660 Ordinary Shares representing aggregate fractional entitlements arising from its recent share capital restructuring, acquiring these fractional shares into treasury at a price of 160p per share. The...

Business Operations and StrategyStock BuybackRegulatory Filings and Compliance

Redcentric Directors and Major Shareholders Adjust Stakes After Tender Offer

Neutral
Aug 5, 2026

Redcentric plc, a leading UK IT managed services provider listed on AIM, delivers network, cloud and hosting solutions that support corporate and public-sector digital infrastructure. Its shareholder base includes director-associated investment firms...

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 of...

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 ent...

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 signif...

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 subsequent s...

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 adm...

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.

Date of analysis: Oct 01, 2026