Download PDF

1. Company Snapshot

1.a. Company Description

Redcentric plc provides IT managed services for public and private sector in the United Kingdom.It offers network services, including connectivity, software-defined wide area network (WAN), local area network, managed WAN, secure remote access, and managed wireless network services; and cloud services consisting of cloud consultancy and migration, infrastructure as a service, hybrid cloud, colocation, data backup, managed Microsoft 365, disaster recovery, platform as a service, and virtual desktop services.The company also provides communication services, such as IP telephony, unified communications, collaboration, SIP trunks, call management and reporting, and call recording services; and IT security services, including network security, application security, access management, security information and event management, endpoint management, distributed denial of service mitigation, vulnerability scanning and management, and security monitoring and analytics services.


In addition, it offers professional services, such as IT consulting, application modernization, implementation, supply chain management, and support and maintenance services.The company was founded in 1997 and is headquartered in Harrogate, the United Kingdom.

Show Full description

1.b. Last Insights on RCN

Redcentric plc's recent performance has been positively driven by its resilience in the face of challenging macroeconomic conditions. Despite the UK market's struggles, with the FTSE100 index closing lower due to weak trade data from China, the company has demonstrated adaptability and innovation. With a focus on high-growth tech stocks, Redcentric's ability to navigate current market conditions positions it as a promising candidate. A recent earnings release is anticipated to provide further insight into the company's financial health and growth prospects.

1.c. Company Highlights

2. Transcript Summary

Unfortunately this company is not part of our coverage yet. But as part of your subscription plan you can request it by clicking just below and we'll process.

Request Coverage

3. NewsRoom

Card image cap

The Strong Earnings Posted By Redcentric (LON:RCN) Are A Good Indication Of The Strength Of The Business

Oct -28

Source:

Card image cap

Redcentric plc's (LON:RCN) Stock Going Strong But Fundamentals Look Weak: What Implications Could This Have On The Stock?

Sep -25

Source:

Card image cap

Investing in Bodycote (LON:BOY) three years ago would have delivered you a 31% gain

Aug -23

Source:

Card image cap

High Growth Tech Stocks To Watch In June 2025

Jun -17

Source:

Card image cap

High Growth Tech Stocks In The UK Featuring Three Prominent Players

Jun -10

Source:

Card image cap

Stocks to watch this week: Broadcom, Lululemon, British American Tobacco, Dr Martens and Rémy Cointreau

May -30

Source:

Card image cap

High Growth Tech Stocks In The UK For May 2025

May -12

Source:

Card image cap

Exploring Redcentric And 2 Other High Growth Tech Stocks In The UK

Apr -11

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.76%)

6. Segments

Recurring

Expected Growth: 12%

Recurring revenue growth of 12% at Redcentric plc is driven by increasing demand for cloud-based services, strategic acquisitions, and a strong sales pipeline. Additionally, the company's focus on delivering managed services and IT solutions to the UK public and private sectors has contributed to the growth. Furthermore, investments in digital transformation and cybersecurity have also boosted revenue.

Product

Expected Growth: 8%

Redcentric plc's 8% growth is driven by increasing demand for cloud-based services, strategic acquisitions, and expansion into new markets. The company's focus on digital transformation, cybersecurity, and data analytics also contributes to its growth. Additionally, the rising need for IT infrastructure and managed services among UK businesses further supports Redcentric's growth momentum.

Services

Expected Growth: 11%

Redcentric plc's 11% growth in services is driven by increasing demand for cloud-based solutions, cybersecurity, and IT consulting. The company's strategic acquisitions, expanded partnerships, and investments in digital transformation capabilities have also contributed to its growth. Additionally, the rising need for businesses to outsource their IT infrastructure and applications has fueled Redcentric's services segment growth.

7. Detailed Products

Cloud Services

Redcentric's Cloud Services provide a scalable and secure infrastructure for businesses, allowing them to host their applications and data in a flexible and cost-effective manner.

Cyber Security

Redcentric's Cyber Security services provide comprehensive protection against cyber threats, including threat detection, penetration testing, and incident response.

Network Services

Redcentric's Network Services provide high-speed, low-latency connectivity solutions for businesses, including WAN, LAN, and Wi-Fi networks.

Unified Communications

Redcentric's Unified Communications solutions provide integrated voice, video, and data communication services, enabling seamless collaboration and communication across organizations.

Data Centre Services

Redcentric's Data Centre Services provide secure, scalable, and highly available data centre infrastructure for businesses, including colocation, hosting, and managed services.

Managed Services

Redcentric's Managed Services provide proactive monitoring, management, and support for IT infrastructure, applications, and services.

8. Redcentric plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Redcentric plc operates in a niche market, providing managed IT services to UK-based organizations. While there are substitutes available, such as in-house IT teams or other managed service providers, Redcentric's specialized services and strong reputation mitigate the threat of substitutes.

Bargaining Power Of Customers

Redcentric plc's customers are primarily large and medium-sized organizations, which may have some bargaining power. However, the company's strong relationships and customized services reduce the bargaining power of customers.

Bargaining Power Of Suppliers

Redcentric plc relies on a few key suppliers for its IT infrastructure and services. While these suppliers have some bargaining power, Redcentric's strong relationships and diversified supply chain mitigate this risk.

Threat Of New Entrants

The managed IT services market has high barriers to entry, including significant capital expenditures and the need for specialized expertise. This limits the threat of new entrants and allows Redcentric plc to maintain its market position.

Intensity Of Rivalry

The managed IT services market is highly competitive, with several established players competing for market share. Redcentric plc must continually innovate and differentiate its services to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 43.57%
Debt Cost 4.62%
Equity Weight 56.43%
Equity Cost 4.62%
WACC 4.62%
Leverage 77.21%

11. Quality Control: Redcentric plc passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Datagroup

A-Score: 5.4/10

Value: 4.6

Growth: 7.2

Quality: 3.9

Yield: 3.1

Momentum: 8.5

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
Redcentric

A-Score: 4.9/10

Value: 3.1

Growth: 5.1

Quality: 4.0

Yield: 5.0

Momentum: 8.0

Volatility: 4.3

1-Year Total Return ->

View Full Report
Stock-Card
GFT Technologies

A-Score: 4.6/10

Value: 7.4

Growth: 7.6

Quality: 5.7

Yield: 3.1

Momentum: 2.0

Volatility: 2.0

1-Year Total Return ->

View Full Report
Stock-Card
INIT

A-Score: 4.4/10

Value: 2.8

Growth: 5.7

Quality: 4.5

Yield: 1.9

Momentum: 8.0

Volatility: 3.7

1-Year Total Return ->

View Full Report
Stock-Card
SeSa

A-Score: 4.2/10

Value: 6.2

Growth: 7.8

Quality: 4.2

Yield: 0.6

Momentum: 4.0

Volatility: 2.7

1-Year Total Return ->

View Full Report
Stock-Card
Northern Data

A-Score: 2.0/10

Value: 6.4

Growth: 2.2

Quality: 1.7

Yield: 0.0

Momentum: 1.0

Volatility: 0.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.2$

Current Price

1.2$

Potential

-0.00%

Expected Cash-Flows