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Redcentric suffers short term on big contract win

Redcentric suffers short term on big contract win

Just as the market had begun to forgive Redcentric (RCN) for its historic accounting errors, investors in the IT services group were hit with a profit warning. The problem, according to management, is that government hosting contracts have been moved away from the group to government-backed facilities, while upfront mobilisation costs and investment in the group’s recent win of the Yorkshire and Humber Public Sector Network contract have hit profits. Thus, management trimmed its adjusted cash profit and revenue forecasts for the 2019 financial year by 10 and 5 per cent, respectively.

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