Trading Statement and Notice of Results
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
RedstoneConnect (AIM: REDS), a leading provider of technology and services for smart buildings and commercial spaces, is pleased to announce its trading update ahead of reporting its final results for the year ended 31 January 2017.
Highlights for the year
The Board is delighted with the performance of the Group in the year with trading being materially ahead of market expectations:
- Adjusted EBITDA* is expected to be approximately £2 million
- Reported Profit before tax** is expected to be approximately £1.5 million
- Achieved on revenues of approximately £41.5 million, demonstrating the successful implementation of the strategy to focus on higher quality, higher margin business
- Good margin improvement across the business with strong performance being seen across all three business streams
- Positive net cash at year-end of £3.2 million
- Emergence of OneSpace™ as an innovative software solution enablingorganisations to better understand, manage and control their workspaceutilisation
- Installation of OneSpace™ at UBS’ London offices and three-year master services agreement providing the opportunity for global deployment
- Successful extension of OneSpace™ to UBM’s New York offices, following successful deployment in its European head office in London
- Development and renewal of large managed services contracts for between three and five years with large blue chip clients
- Strong order book underpinning medium term growth expectations
The actual results are still subject to final audit and RedstoneConnect will publish results for the year ended 31 January 2017 on Tuesday, 25 April 2017. There will be a presentation to analysts on the morning of results. For further information or to register attendance, please contact Vigo Communications via email on email@example.com.
*Results for the period from continuing operations before net finance costs, depreciation, amortisation, integration and transactional items, impairment charges and share based payment charge.
**reported profit before tax includes; integration and transactional items, share based payment charge and profits in the period from discontinued operations.
Mark Braund, Chief Executive Officer of RedstoneConnect, commented:
“We are delighted with RedstoneConnect’s progress throughout the past year as we have continued to capitalise on our strong market position and have achieved a number of key milestones in our journey towards developing a more dynamic, robust and predictable business model.
“As innovation in smart buildings gathers pace, our software, managed services and systems integration businesses are all contributing to position RedstoneConnect as a market leader; and the Company’s recent large-scale contract wins are testament to this. In particular, the installation of our novel in-building cellular solution at the London office campus of one of the world’s leading technology firms, is an example of the high quality work we are winning with major global organisations.
“Our sales pipeline appears strong and, combined with our solid recurring revenue stream, provides support and confidence in the outlook for the Company.”