AIM-listed firm has bolstered its finance team following FCA investigation into accounting
Companies: Redcentric Plc
IT managed services provider Redcentric said on Friday that it was trading in line with expectations for the full-year and that sales were gaining momentum after some key contract wins.
The company has enjoyed key contract wins and renewals in both public and private sectors and has reduced its Net Debt 6% to £39.5m despite exceptional items.
"Our lending banks have remained supportive over recent months and the Company is pleased to announce that amended debt facilities are now in place. Waivers in relation to historic covenant breaches have been secured such that the Company is fully compliant with its facilities."
The AIM-listed firm added that the remedial programme outlined at the interim results in December had made progress, and the finance team had been strengthened and improvements made to internal controls following its recently-announced FCA investigation.
In March, the FCA launched an investigation into Redcentric's finances following the historic overstatement of net assets and profits. The company discovered accounting misstatements during the audit of its half-year results in November, which led to a share price fall of nearly 70%.
CEO Fraser Fisher said the firm had faced challenges in the last year, but added that a lot of work had been carried out in the past few months to execute the remedial plan and strengthen its reporting and control systems.
"We are pleased to be able to report that trading is in line with expectations. Throughout the challenges at the end of last year, we have continued to enjoy the support of our stakeholders including customers, banks and loyal colleagues."
Shares in Redcentric rose 3% early on Friday.