StockMarketWire.com - IT services provider Redcentric said it was unlikely to pay a final dividend and had halted its share buyback programme until the Covid-19 situation became clearer.

The company said its trading performance for the year through March was expected to be in line with its expectations.

Net debt at 31 March was £13.5m, including £0.4m of share buy backs in the second half of the financial year.

Redcentric said is strategy of focusing on our network and platform infrastructure had put us in a good position to meet increased demand for flexible and remote co-working.

It added that 90% of its revenues were recurring in nature and over half of our non-recurring revenue has historically been derived from the health sector.

Redcentric said it had seen a material increase in sales in the second half of March, with demand particularly strong for increased bandwidth and, in particular, for its secure remote access product.

However, the company said it anticipated a reduction in sales to new customers and a slowdown in major change projects from existing customers due to the disease outbreak.




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