Redcentric
Market Cap
UK£182.7m
Last Updated
2021/01/14 18:43 UTC
Data Sources
Company Financials +
Executive Summary
Redcentric plc provides IT managed services in the United Kingdom. More Details
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet and fair value.
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 is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: RCN's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
-3.3%
RCN
0.4%
GB IT
-0.7%
GB Market
1 Year Return
9.8%
RCN
10.5%
GB IT
-7.7%
GB Market
Return vs Industry: RCN underperformed the UK IT industry which returned 10.8% over the past year.
Return vs Market: RCN exceeded the UK Market which returned -7.6% over the past year.
Shareholder returns
| RCN | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.3% | 0.4% | -0.7% |
| 30 Day | -4.1% | 8.6% | 4.5% |
| 90 Day | -9.9% | 11.2% | 15.6% |
| 1 Year | 10.8%9.8% | 11.6%10.5% | -3.9%-7.7% |
| 3 Year | 28.8%24.2% | 74.6%66.3% | 4.7%-8.1% |
| 5 Year | -27.4%-31.2% | 179.0%151.4% | 49.0%15.2% |
Long-Term 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
Have Insiders Been Selling Redcentric plc (LON:RCN) Shares This Year?1 month ago | Simply Wall St
Redcentric (LON:RCN) Has Debt But No Earnings; Should You Worry?3 months ago | Simply Wall St
Calculating The Fair Value Of Redcentric plc (LON:RCN)Valuation
Is Redcentric undervalued compared to its fair value and its price relative to the market?
26.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RCN (£1.18) is trading below our estimate of fair value (£1.61)
Significantly Below Fair Value: RCN is trading below fair value by more than 20%.
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 good value based on its PB Ratio (2.6x) compared to the GB IT industry average (2.9x).
Next Steps
Future Growth
How is Redcentric forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
142.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RCN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1%).
Earnings vs Market: RCN is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: RCN's is expected to become profitable in the next 3 years.
Revenue vs Market: RCN's revenue (3.7% per year) is forecast to grow slower than the UK market (6.5% per year).
High Growth Revenue: RCN's revenue (3.7% 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?
-43.7%
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 43.7% 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 (10.5%).
Return on Equity
High ROE: RCN has a negative Return on Equity (-12.9%), 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 (£25.0M) do not cover its short term liabilities (£31.9M).
Long Term Liabilities: RCN's short term assets (£25.0M) exceed its long term liabilities (£22.7M).
Debt to Equity History and Analysis
Debt Level: RCN's debt to equity ratio (4%) is considered satisfactory.
Reducing Debt: RCN's debt to equity ratio has reduced from 28.1% to 4% 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: Whilst unprofitable RCN has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: RCN is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 43.5% per year.
Next Steps
Dividend
What is Redcentric current dividend yield, its reliability and sustainability?
2.03%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RCN's dividend (2.03%) is higher than the bottom 25% of dividend payers in the UK market (1.52%).
High Dividend: RCN's dividend (2.03%) is low compared to the top 25% of dividend payers in the UK market (4.57%).
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 7 years.
Current Payout to Shareholders
Dividend Coverage: RCN is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: RCN's dividends in 3 years are forecast to be well covered by earnings (33.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.2yrs
Average management tenure
CEO
Peter Brotherton (53 yo)
2.17yrs
Tenure
UK£529,000
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 ($USD724.33K) is about average for companies of similar size in the UK market ($USD607.16K).
Compensation vs Earnings: Peter's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 2.17yrs | UK£529.00k | 0.15% £ 267.4k | |
| CFO & Director | 0.75yr | no data | 0.028% £ 50.5k | |
| Chief Operating Officer | 4.25yrs | no data | no data | |
| Company Secretary | no data | no data | no data |
2.2yrs
Average Tenure
Experienced Management: RCN's management team is considered experienced (2.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 2.17yrs | UK£529.00k | 0.15% £ 267.4k | |
| CFO & Director | 0.75yr | no data | 0.028% £ 50.5k | |
| Independent Non-Executive Director | 4yrs | UK£44.00k | 0.0066% £ 12.0k | |
| Independent Non-Executive Chairman | 1.25yrs | UK£39.00k | no data | |
| Senior Independent Non-Executive Director | 3.5yrs | UK£49.00k | 0.013% £ 23.4k |
3.5yrs
Average Tenure
56yo
Average Age
Experienced Board: RCN's board of directors are considered experienced (3.5 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 been diluted in the past year, with total shares outstanding growing by 5%.
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£182.672m
- Shares outstanding: 156.13m
- 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. It offers network services, including connectivity, software-defined wide area network, local area network, managed wide area network, sec...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/14 18:43 |
| End of Day Share Price | 2021/01/14 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2020/03/31 |
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.