Redcentric PLC (GB:RCN)
LSE:RCN
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Redcentric
(LSE:RCN)
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Rating:54Neutral
Price Target:
122.00 p
▲(1.67% Upside)
Action:ReiteratedDate:12/07/25
Redcentric's overall stock score reflects a company undergoing strategic transition. The most significant factor is the financial performance, which shows mixed results with challenges in revenue and profitability. Technical analysis indicates bearish momentum, while valuation suggests potential overvaluation. However, positive corporate events provide a strategic focus that could improve future performance.
Positive Factors
Free Cash Flow Growth
Sustained 14.4% free cash flow growth indicates improving cash conversion from operations. Durable FCF supports debt reduction, recurring service investment, and potential shareholder returns, giving the company flexibility to execute strategy without reliance on external funding.
Negative Factors
Declining Revenue
Material revenue decline erodes scale benefits in a services business dependent on recurring contracts. Reduced top-line weakens bargaining power with vendors, constrains cross-sell economics, and makes it harder to fund sales and R&D to rebuild sustainable growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Growth
Sustained 14.4% free cash flow growth indicates improving cash conversion from operations. Durable FCF supports debt reduction, recurring service investment, and potential shareholder returns, giving the company flexibility to execute strategy without reliance on external funding.
Read all positive factors
Redcentric (RCN) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£185.60M
Dividend Yield3.01%
Average Volume (3M)73.38K
Price to Earnings (P/E)18.7
Beta (1Y)-0.04
Revenue Growth-31.46%
EPS Growth297.44%
CountryUK
Employees659
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.03
Shares Outstanding159,316,710
10 Day Avg. Volume80,864
30 Day Avg. Volume73,384
Financial Highlights & Ratios
PEG Ratio-0.29
Price to Book (P/B)3.80
Price to Sales (P/S)1.50
P/FCF Ratio10.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.05
Revenue Forecast (FY)£140.20M
Redcentric Business Overview & Revenue Model
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, a...
How the Company Makes Money
Redcentric generates revenue through a combination of subscription-based services, managed IT solutions, and consultancy fees. Key revenue streams include monthly recurring revenue from cloud services, data center hosting, and managed network serv...
Redcentric Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
55
Neutral
Cash Flow
60
Neutral
| Breakdown | TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 115.11M | 135.14M | 163.15M | 141.67M | 93.33M | 91.40M |
| Gross Profit | 68.25M | 83.28M | 118.03M | 92.14M | 52.58M | 51.02M |
| EBITDA | 15.28M | 29.36M | 15.77M | 14.89M | 20.90M | 28.04M |
| Net Income | 2.46M | 3.49M | -3.44M | -9.25M | 6.94M | 9.01M |
Balance Sheet | ||||||
| Total Assets | 179.94M | 173.45M | 184.51M | 195.42M | 122.57M | 122.64M |
| Cash, Cash Equivalents and Short-Term Investments | 4.06M | 3.02M | 3.13M | 1.37M | 1.80M | 5.25M |
| Total Debt | 46.25M | 45.46M | 75.50M | 74.33M | 18.45M | 20.82M |
| Total Liabilities | 125.64M | 119.99M | 130.02M | 137.23M | 50.72M | 50.55M |
| Stockholders Equity | 54.30M | 53.45M | 54.48M | 58.19M | 71.85M | 72.09M |
Cash Flow | ||||||
| Free Cash Flow | 10.36M | 20.10M | 12.24M | 6.01M | 13.71M | 13.07M |
| Operating Cash Flow | 19.80M | 29.77M | 22.98M | 12.38M | 16.48M | 15.38M |
| Investing Cash Flow | -10.64M | -11.36M | -11.63M | -32.98M | -7.44M | -2.31M |
| Financing Cash Flow | -9.07M | -18.50M | -9.48M | 18.49M | -12.51M | -11.51M |
Redcentric Technical Analysis
Neutral
120.00
Price Trends
118.46
Negative
119.67
Negative
124.21
Negative
Market Momentum
-0.90
Negative
49.24
Neutral
46.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RCN, the sentiment is Neutral. The current price of 120 is above the 20-day moving average (MA) of 116.31, above the 50-day MA of 118.46, and below the 200-day MA of 124.21, indicating a neutral trend. The MACD of -0.90 indicates Negative momentum. The RSI at 49.24 is Neutral, neither overbought nor oversold. The STOCH value of 46.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:RCN.
Redcentric Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | £50.55M | 14.63 | 38.65% | 2.69% | 30.01% | 138.65% | |
69 Neutral | £53.37M | 15.19 | 12.27% | ― | 20.40% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | £185.60M | 18.70 | 4.57% | 3.01% | -31.46% | 297.44% | |
52 Neutral | £29.55M | -2.77 | -18.74% | ― | -5.84% | 55.30% | |
51 Neutral | £110.65M | 25.88 | 10.20% | 13.93% | -27.01% | -49.07% | |
50 Neutral | £12.57M | -4.40 | -67.57% | ― | -12.11% | -106.04% |
* Technology Sector Average
GB:RCN
Redcentric
116.50
-9.00
-7.17%
GB:TIA
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31.50
-25.00
-44.25%
GB:FDM
FDM Group (Holdings)
101.20
-113.55
-52.87%
GB:TRD
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290.00
-7.44
-2.50%
GB:TPX
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32.00
12.50
64.10%
GB:MTEC
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35.75
13.50
60.67%
Redcentric Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Redcentric Updates Share Capital After Employee Option Exercise
Neutral
Mar 19, 2026
Redcentric has issued 5,620 new ordinary shares following the exercise of employee options granted under its 2014 Save As You Earn plan, reflecting ongoing use of equity-based incentives in its remuneration structure. The new shares are expected t...
Business Operations and StrategyRegulatory Filings and Compliance
Redcentric Issues New Shares After Employee Option Exercise
Neutral
Mar 13, 2026
Redcentric plc has issued 6,267 new ordinary shares following the exercise of employee share options, with admission of the new shares to trading on AIM expected around 19 March 2026. After the admission, the company’s total issued share cap...
Private Placements and FinancingRegulatory Filings and Compliance
Redcentric Issues New Shares After Employee Option Exercise
Neutral
Feb 20, 2026
Redcentric plc has issued 3,747 new ordinary shares following the exercise of employee options under its Save As You Earn 2014 plan, with the new shares expected to commence trading on AIM around 25 February 2026. Following this admission, Redcent...
Private Placements and FinancingRegulatory Filings and Compliance
Redcentric Issues New Shares Following Employee Option Exercise
Neutral
Jan 9, 2026
Redcentric has issued 5,620 new ordinary shares following the exercise of employee options granted under its 2014 Save As You Earn scheme, reflecting ongoing participation in its employee share incentive arrangements. The new shares, expected to b...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.