RedstoneConnect Plc announce unaudited interim results for the six months ended 31 July 2016

RedstoneConnect Plc announce unaudited interim results for the six months ended 31 July 2016

Board confirms current trading remains strong with the business performing comfortably in line with management's expectations.

11 October 2016

The RedstoneConnect Plc Board are delighted with the progress made in implementing the business strategy over the first six months of the year, a period in which a number of important milestones have been achieved for the Group. The Group is transitioning towards an evolved financial model, with a stronger mix of business incorporating higher margins, recurring revenues and greater visibility of earnings. The business is now leaner and fitter, with a strong and developing proposition in each of its core markets and segments.

The full regulatory announcement is available via this link : RNS 

A copy of these interim results is available by following this link on the Company's website : Financial Reports

Financial highlights:

  • Adjusted EBITDA* up 50% to £0.9m (2015 H1: £0.6m)
  • Gross margin from continuing operations of 19% (2015 H1: 16%) an increase of 3% or 300-basis points
  • Revenue from continuing operations up 1.5% to £20.8m (2015 H1: £20.5m)
  • Profit after tax from continuing operations of £0.8m (2015 H1: £0.02m)
  • Cash and cash equivalents of £2.9m (2015 H1: overdrawn £0.1m)
  • Successfully raised £3.1m (before costs) to fund the acquisition of Connect IB Limited, March 2016
  • Continued progress evolving the Group's financial model to more annuity-based revenue streams

Results for the period from continuing operations before net finance costs, depreciation, amortisation, integration and transactional items, impairment charges and share based payment charge.

Operational Highlights:

  • Successful rebranding of the Group as RedstoneConnect to reflect its renewed focus post-restructuring
  • Integration of Connect IB now complete, with the delivery of good revenue synergies including:
  • Ongoing development and deployment of OneSpace, the Group's occupancy management software technology, as demonstrated by a three-year framework contract win at UBS, and our first deal under our 'per seat' SaaS pricing model

 Frank Beechinor, Chairman of RedstoneConnect commented:

 "I am delighted with the progress the Company has made during the six-month period to 31 July 2016, which has included the successful rebranding of the Group to RedstoneConnect.  Our ability to combine the UK's leading smart infrastructure business with an exceptional software proposition, creating a compelling end-to-end client solution, has quickly resonated with customers as they seek to future proof their real estate infrastructure whilst leveraging efficiency gains and maximising revenue generating opportunities.”

Mark Braund, CEO of RedstoneConnect, commented:

"RedstoneConnect has produced a strong first-half performance as we continue to deliver on our strategic objectives following the refocussing of the Group. Our priorities as we move into 2017 are on working with existing and new clients to deliver high value opportunities, particularly those that will deliver higher margins and annuity-based recurring revenues.  Our pipeline of sales opportunities is strong, a clear indication of our ability to leverage our traditional IT and smart infrastructure experience alongside our newer software solutions."