Final results for the year ended 31 January 2017

Final results for the year ended 31 January 2017

RedstoneConnect (AIM: REDS), a leading provider of technology and services for smart buildings and commercial spaces, announces its final results for the year ended 31 January 2017.

Financial Highlights:

Profit after tax of £2.1 million (2016: loss of £2.2 million)

Gross profit up 33% to £9.2 million (2016: £7.0 million), with an increased gross margin of 22% (2016: 17%)

Revenue up 3.5% to £41.5 million (2016: £40.1 million)

Adjusted EBITDA* materially ahead of management expectations, up 56% to £2.0 million (2016: £1.3 million) reflecting the successful implementation of strategy to focus on higher quality, higher margin business

Reported Profit before tax** of £1.5 million (2016: loss of £0.8 million)

Profit before tax from continuing operations of £1.2 million (2016: loss of £0.8 million)

Profit after tax from continuing operations of £1.8 million (2016: loss of £0.7 million)

Cash generated from operations of £0.9 million (2016: cash out flow of £2.7 million)

Cash at year end of £3.2 million (2016: £1.0 million) and net cash of £0.8 million (2016: £1.0 million)

Basic earnings per share from continuing operations of 0.11 pence (2016: loss of 0.06 pence)

Concluded the Group’s financial restructuring with the early exit of the Stokenchurch office lease saving the Group approximately £0.7m over the remainder of the lease

*results for the period from continuing operations before net finance costs, depreciation, amortisation, integration costs and transactional items, impairment charge and share based payments.

**reported profit before tax includes; integration and transactional items, share based payment charge and £0.3 million of profits in the period from discontinued operations.

Operational Highlights:

Completed and fully integrated two diversifying and complementary acquisitions: Connect IB and Commensus, adding owned software IP and extending service capabilities

Upgraded OneSpace which is now a strategic module of the Group’s cloud based Smart buildings software platform

Significant global master services agreements for OneSpace with UBS and UBM

Renewal of all significant key customer Managed Service contracts which came up for renewal in the year, on three to five year terms

Key milestone achieved with Distributed Antenna System ‘DAS’ delivered as a service (DASaaS), with a contract secured for the design, installation and management at the London headquarters of a leading global technology group

Strong order book and new business pipeline achieved from both new and existing customers as we move into the new financial year

Successfully rebranded the Group to RedstoneConnect Plc

Mark Braund, CEO of RedstoneConnect, commented:

“RedstoneConnect has made significant progress this year having completed the restructuring of the business, acquiring and fully integrating both Connect IB and Commensus, whilst achieving positive momentum against all of our strategic priorities, in particular the building-out of our software offering and improving our business mix towards higher-margin recurring revenues.

Looking forward, the Group is well-placed to capitalise on the demand for Smart Building solutions, with our OneSpace product generating significant interest from both new and existing customers.”

A copy of these final results together with the annual report and accounts and further information on the Company is available on the Company’s website at:

For the full announcement of the final results please click here

For the full Annual Report Year Ended 31 January 2017 click here