Redcentric
Market Cap
UK£191.5m
Last Updated
2020/07/10 20:54 UTC
Data Sources
Company Financials +
Executive Summary
Redcentric plc provides IT managed services in the United Kingdom.
Risk Analysis
Earnings are forecast to decline by an average of -169.7% per year for the next 3 years
Currently unprofitable and not forecast to become profitable over the next 3 years
Snowflake Analysis
Worrying balance sheet with weak fundamentals.
Share Price & News
How has Redcentric's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: RCN has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.0%
RCN
0.6%
GB IT
-0.8%
GB Market
1 Year Return
64.3%
RCN
-6.2%
GB IT
-15.4%
GB Market
Return vs Industry: RCN exceeded the UK IT industry which returned -7.6% over the past year.
Return vs Market: RCN exceeded the UK Market which returned -16% over the past year.
Shareholder returns
| RCN | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.0% | 0.6% | -0.8% |
| 30 Day | 5.7% | 3.9% | -3.4% |
| 90 Day | 20.0% | 10.8% | 5.6% |
| 1 Year | 65.7%64.3% | -5.1%-6.2% | -11.4%-15.4% |
| 3 Year | 74.9%70.3% | 67.9%57.5% | -4.5%-16.3% |
| 5 Year | -14.8%-20.2% | 120.7%103.0% | 12.7%-12.4% |
Price Volatility Vs. Market
How volatile is Redcentric's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall St
Estimating The Intrinsic Value Of Redcentric plc (LON:RCN)2 months ago | Simply Wall St
Did You Manage To Avoid Redcentric's (LON:RCN) 26% Share Price Drop?4 months ago | Simply Wall St
We Think Redcentric (LON:RCN) Can Stay On Top Of Its DebtValuation
Is Redcentric undervalued compared to its fair value and its price relative to the market?
2.66x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: RCN (£1.29) is trading above our estimate of fair value (£1.02)
Significantly Below Fair Value: RCN is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: RCN is unprofitable, so we can't compare its PE Ratio to the GB IT industry average.
PE vs Market: RCN is unprofitable, so we can't compare its PE Ratio to the UK market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate RCN's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: RCN is overvalued based on its PB Ratio (2.7x) compared to the GB IT industry average (2.5x).
Next Steps
Future Growth
How is Redcentric forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
-169.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RCN is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: RCN is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: RCN is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: RCN's revenue (1.9% per year) is forecast to grow slower than the UK market (3.3% per year).
High Growth Revenue: RCN's revenue (1.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if RCN's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Redcentric performed over the past 5 years?
-38.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RCN is currently unprofitable.
Growing Profit Margin: RCN is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: RCN is unprofitable, and losses have increased over the past 5 years at a rate of -38.8% per year.
Accelerating Growth: Unable to compare RCN's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: RCN is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (10%).
Return on Equity
High ROE: RCN has a negative Return on Equity (-1.23%), as it is currently unprofitable.
Next Steps
Financial Health
How is Redcentric's financial position?
Financial Position Analysis
Short Term Liabilities: RCN's short term assets (£22.0M) do not cover its short term liabilities (£24.5M).
Long Term Liabilities: RCN's short term assets (£22.0M) do not cover its long term liabilities (£38.5M).
Debt to Equity History and Analysis
Debt Level: RCN's debt to equity ratio (17.6%) is considered satisfactory.
Reducing Debt: RCN's debt to equity ratio has increased from 13.2% to 17.6% over the past 5 years.
Balance Sheet
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Insufficient data to determine if RCN has enough cash runway based on its current free cash flow.
Forecast Cash Runway: Insufficient data to determine if RCN has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.
Next Steps
Dividend
What is Redcentric current dividend yield, its reliability and sustainability?
1.55%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RCN's dividend (1.55%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.96%).
High Dividend: RCN's dividend (1.55%) is low compared to the top 25% of dividend payers in the UK market (5.41%).
Stability and Growth of Payments
Stable Dividend: RCN has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: RCN's dividend payments have increased, but the company has only paid a dividend for 6 years.
Current Payout to Shareholders
Dividend Coverage: RCN is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.0yrs
Average management tenure
CEO
Peter Brotherton (53yo)
1.67yrs
Tenure
UK£419,000
Compensation
Mr. Peter James Brotherton, ACA has been Chief Executive Officer of Redcentric plc., since June 2019 and served as its Company Secretary at Redcentric plc since November 28, 2016. Mr. Brotherton served as ...
CEO Compensation Analysis
Compensation vs Market: Peter's total compensation ($USD528.56K) is about average for companies of similar size in the UK market ($USD676.93K).
Compensation vs Earnings: Peter's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 1.67yrs | UK£419.00k | 0.071% £135.4k | |
| CFO & Director | 0.25yr | no data | no data | |
| Chief Operating Officer | 3.75yrs | no data | no data | |
| Executive Director | no data | no data | no data | |
| Company Secretary | no data | no data | no data |
1.0yrs
Average Tenure
47yo
Average Age
Experienced Management: RCN's management team is not considered experienced ( 1 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 1.67yrs | UK£419.00k | 0.071% £135.4k | |
| CFO & Director | 0.25yr | no data | no data | |
| Executive Director | no data | no data | no data | |
| Independent Non-Executive Director | 3.5yrs | UK£36.00k | 0.0069% £13.2k | |
| Independent Non-Executive Chairman | 0.75yr | no data | no data | |
| Senior Independent Non-Executive Director | 3yrs | UK£40.00k | 0.013% £25.8k |
3.0yrs
Average Tenure
54.5yo
Average Age
Experienced Board: RCN's board of directors are considered experienced (3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Redcentric plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Redcentric plc
- Ticker: RCN
- Exchange: AIM
- Founded: 1997
- Industry: IT Consulting and Other Services
- Sector: Software
- Market Cap: UK£191.550m
- Shares outstanding: 148.49m
- Website: https://www.redcentricplc.com
Number of Employees
Location
- Redcentric plc
- Central House
- Beckwith Knowle
- Harrogate
- North Yorkshire
- HG3 1UG
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| RCN | AIM (London Stock Exchange AIM Market) | Yes | Ordinary Shares | GB | GBP | Apr 2013 |
Biography
Redcentric plc provides IT managed services in the United Kingdom. The company offers applications services, including mainframe software support services and application acceleration services. It also provides collaboration services comprising IP telephony, SIP trunks, unified communications, video conferencing, calls and lines, mobile, and inbound services; and infrastructure services consisting of data management, disaster recovery as a service, hosted desktop, hosting and collocation, hybrid cloud, infrastructure as a service, managed exchange, software as a service, virtualization, and server load balancing services. In addition, the company offers network services, including multiprotocol label switching, metro network, business Internet access, connectivity, high capacity, Ethernet fabric, LAN and WAN, N3 network access, wireless network, health and social care network connectivity, PSN connectivity, network monitoring, and secure remote access services. Further, it provides security services comprising encryption, firewall, and network security; and professional services, such as consultation, migration, and optimization services. Additionally, the company offers Oracle services, including database managed services and cloud-based Oracle DBaaS, managed physical hosting, and managed database and application support for public sector, enterprise, and SME organizations. Redcentric plc was founded in 1997 and is headquartered in Harrogate, the United Kingdom.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/10 20:54 |
| End of Day Share Price | 2020/07/10 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2019/03/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.