IT service management company Redcentric PLC (LON: RDN) have announced a consecutive and deeper annual loss on-year.
The Company attributed the loss to a decline in sales, the result of which was a 6.7% fall in revenue, to £93.3 million. In turn, pre-tax losses came to £1.4 million for the full-year through March, widening from £0.5 million on-year.
This news follows contention surrounding a case of misconduct during an audit of the Company by PricewaterhouseCoopers.
In a statement, PwC spokesperson said,
“We are sorry that our work fell below the professional standards expected of us. Since the work in question was completed, we have taken numerous steps to strengthen processes. In addition, this month we announced an additional £30m investment annually as part of a new wide-ranging action plan to provide greater focus on the quality and public interest responsibilities of PwC’s statutory audit services.”
Elsewhere in the tech sector, Codemasters Group Holdings Limited (LON: CDM), Amino Technologies Plc (LON: AMO) and MTI Wireless Edge Limited (LON:MWE) provided trading updates.
Redcentric comments
“We have made organisational and structural changes to best position the business for the future whilst at the same time progressing through historical issues that the business has faced,” said Chief Executive Peter Brotherton.
“The second half of the year has seen success in the public sector with total contracts signed to date of £17m.”
“Additionally we have realised annualised cost savings of £5m.”
“Our cash performance continues to be excellent and this, combined with our overall confidence in the future of the group, has allowed us to announce an improved dividend policy and seek authority to commence a share buyback programme.”
Investor considerations
Redcentric declared a final dividend of 1.0p per share – meaning a total dividend for the year of 1.4p.
The Company’s shares are down 1.31% or 1.05p since markets opened on Tuesday morning, dipping to 79.15p a share 25/06/19 10:08 GMT. Analysts from finnCap have reiterated their ‘Corporate’ stance on Redcentric stock.