Redcentric (RCN) AI Stock Analysis

• Market Cap: £184.79M
• Dividend Yield: 3.01%
• Average Volume (3M): 73.38K
• Price to Earnings (P/E): 18.7
• Beta (1Y): -0.04
• Revenue Growth: -31.46%
• EPS Growth: 297.44%
• Country: UK
• Employees: 659
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.03
• Shares Outstanding: 159,304,340
• 10 Day Avg. Volume: 80,864
• 30 Day Avg. Volume: 73,384
• PEG Ratio: -0.29
• Price to Book (P/B): 3.80
• Price to Sales (P/S): 1.50
• P/FCF Ratio: 10.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: 122.00 p ▲(1.67% Upside)
• Action: Reiterated Date: 12/07/25
• Date: Action: Reiterated 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

Recurring managed-services revenue

Redcentric's revenue base is anchored in multi-year managed services, connectivity and cybersecurity contracts. That recurring model supports predictable cash flows, higher customer retention and cross-sell durability, making operating cash generation more stable over the medium term.

Improving leverage

The balance sheet shows tangible progress in leverage management and a return to positive ROE. Lower relative debt reduces refinancing and solvency pressures, giving management more flexibility to invest in growth or shore up margins without jeopardising financial stability over coming quarters.

Strong free cash flow trend

Consistent free cash flow growth and a high FCF-to-net-income ratio indicate efficient cash conversion from operations. That cash generation supports debt paydown, reinvestment in core managed services, and resilience versus short-term revenue dips, sustaining financial flexibility.

Negative Factors

Sharp revenue decline

A steep year-over-year revenue contraction signals erosion of scale or lost contracts, which undermines fixed-cost absorption and long-term margin recovery. Reversing such a structural revenue decline is essential to restore sustainable profitability and fund strategic initiatives.

Thin profitability margins

Low net margins limit internal funding for growth, capex or acquisitions and reduce buffer against cost inflation. Persistently thin profitability constrains reinvestment in product and service improvements, impairing competitiveness and long-term margin resilience.

Divestiture / transition execution risk

Divesting the data-centre arm refocuses the company but removes revenue diversification and creates execution risk: proceeds must be redeployed effectively, and the company must replace lost scale while integrating strategy changes — a structural challenge in the medium term.

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, 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.

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 services. The company also earns income from project-based work, where it provides tailored solutions for clients' specific IT needs. Significant partnerships with technology providers enhance Redcentric's offerings, allowing it to leverage leading platforms and technologies, which further contributes to its earnings. Additionally, the growing demand for digital transformation and increased cybersecurity needs among businesses has created a favorable market environment that supports Redcentric's revenue growth.

Redcentric Financial Statement Overview

Summary

Redcentric's financial performance is mixed. The income statement reveals challenges with declining revenue and low profitability margins. However, the balance sheet shows moderate improvement in leverage, and cash flow analysis indicates positive trends with strong cash management. Overall, the company is in transition, needing to enhance revenue growth and profitability.

Income Statement

Redcentric's income statement shows a mixed performance. The gross profit margin has been relatively stable, but there's a notable decline in revenue growth, with a significant drop of 19.53% in the most recent year. The net profit margin has improved from a negative position, but remains low at 2.58%. EBIT and EBITDA margins have shown some recovery, yet they are still not at optimal levels. Overall, the company faces challenges in maintaining revenue growth and profitability.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio has improved from previous years, indicating better leverage management, but it remains relatively high at 0.85. Return on equity has turned positive, showing some profitability, yet it is still modest at 6.53%. The equity ratio is stable, suggesting a balanced asset structure. The company needs to continue improving its leverage and profitability metrics.

Cash Flow

Cash flow analysis reveals a positive trend with a 14.4% growth in free cash flow. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to profits. The free cash flow to net income ratio is also strong at 67.53%, suggesting efficient cash management. However, the company should focus on sustaining this growth to support its financial stability.

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

• Technical Analysis Sentiment: Negative
• Last Price: 120.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RCN, the sentiment is Negative. The current price of 120 is above the 20-day moving average (MA) of 118.15, above the 50-day MA of 119.25, and below the 200-day MA of 124.81, indicating a bearish trend. The MACD of -0.98 indicates Positive momentum. The RSI at 43.50 is Neutral, neither overbought nor oversold. The STOCH value of 31.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:RCN.

Redcentric Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FDM	74 Outperform	£130.33M	9.36	24.53%	13.93%	-27.01%	-49.07%
TRD	72 Outperform	£52.29M	14.63	38.65%	2.69%	30.01%	138.65%
MTEC	69 Neutral	£55.61M	15.19	12.27%	―	20.40%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
RCN	54 Neutral	£184.79M	18.70	4.57%	3.01%	-31.46%	297.44%
TPX	52 Neutral	£28.63M	-2.77	-18.74%	―	-5.84%	55.30%
TIA	50 Neutral	£16.56M	-4.40	-67.57%	―	-12.11%	-106.04%

Redcentric Corporate Events

Redcentric Updates Share Capital After Employee Option Exercise

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 to begin trading on AIM around 25 March 2026, bringing total issued share capital to 159,316,719 shares, of which 159,316,223 carry voting rights, a figure investors must now use for regulatory disclosure thresholds.

The small increase in share capital slightly dilutes existing holdings but underscores the company’s continued alignment of staff interests with shareholders through share ownership. For investors and other stakeholders, the updated voting share count is relevant for monitoring significant shareholdings and ensuring compliance with disclosure rules under the FCA’s transparency regime.

The most recent analyst rating on (GB:RCN) stock is a Hold with a £121.00 price target. To see the full list of analyst forecasts on Redcentric stock, see the GB:RCN Stock Forecast page.

Redcentric Issues New Shares After Employee Option Exercise

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 capital will rise to 159,311,099 ordinary shares, of which 159,310,603 will constitute the voting share capital once treasury shares are excluded, slightly diluting existing holders but underscoring ongoing use of equity-based staff incentives.

The adjustment in share capital requires investors to use the updated voting share figure when assessing disclosure thresholds under UK transparency rules. This minor capital change reflects routine corporate housekeeping rather than a strategic shift, but it fine-tunes Redcentric’s share register and maintains compliance with regulatory reporting standards.

The most recent analyst rating on (GB:RCN) stock is a Hold with a £124.00 price target. To see the full list of analyst forecasts on Redcentric stock, see the GB:RCN Stock Forecast page.

Redcentric Issues New Shares After Employee Option Exercise

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, Redcentric’s total issued share capital will rise to 159,304,832 ordinary shares, of which 159,304,336 carry voting rights after excluding treasury shares, a figure relevant for shareholders monitoring disclosure thresholds under FCA rules.

The most recent analyst rating on (GB:RCN) stock is a Hold with a £123.00 price target. To see the full list of analyst forecasts on Redcentric stock, see the GB:RCN Stock Forecast page.

Redcentric Issues New Shares Following Employee Option Exercise

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 begin trading on AIM around 15 January 2026, will increase the company’s total issued share capital to 159,301,085 ordinary shares (of which 159,300,589 carry voting rights), a small technical adjustment that slightly broadens the equity base and updates the reference figure for shareholders’ disclosure obligations under FCA transparency rules.

The most recent analyst rating on (GB:RCN) stock is a Hold with a £122.00 price target. To see the full list of analyst forecasts on Redcentric stock, see the GB:RCN Stock Forecast page.

Redcentric Non-Executive Director Richard McGuire Increases Shareholding

Redcentric plc announced that Non-Executive Director Richard McGuire has increased his stake in the company by purchasing 24,992 ordinary shares at 119.2 pence each, bringing his total holding to 75,000 shares. The director’s share purchase signals strengthened insider confidence in the business and may be viewed positively by investors, underscoring management’s commitment to the company’s prospects as it continues to operate in the competitive UK managed IT services market.

The most recent analyst rating on (GB:RCN) stock is a Hold with a £122.00 price target. To see the full list of analyst forecasts on Redcentric stock, see the GB:RCN Stock Forecast page.

Redcentric Issues New Shares Following Employee Option Exercise

Redcentric plc has issued 4,008 new ordinary shares following the exercise of employee options under its 2014 Save As You Earn scheme, with the new shares expected to begin trading on AIM around 6 January 2026. After admission of these shares, Redcentric’s total issued share capital will rise to 159,295,465 ordinary shares, of which 496 are held in treasury, giving a voting share capital of 159,294,969 shares for the purposes of regulatory disclosure thresholds under the FCA’s transparency rules.

The most recent analyst rating on (GB:RCN) stock is a Hold with a £122.00 price target. To see the full list of analyst forecasts on Redcentric stock, see the GB:RCN Stock Forecast page.

Redcentric Director Increases Stake with December Share Purchase

Redcentric PLC disclosed that non-executive director Richard McGuire has increased his stake in the company by purchasing 29,000 ordinary shares at 118 pence each on 24 December 2025, bringing his total holding to 50,008 shares. The board-level share purchase, conducted on AIM, signals additional director confidence in the company and will be closely watched by investors assessing insider sentiment toward Redcentric’s operational and strategic outlook.

The most recent analyst rating on (GB:RCN) stock is a Hold with a £122.00 price target. To see the full list of analyst forecasts on Redcentric stock, see the GB:RCN Stock Forecast page.

Redcentric Corrects Director Dealing Notice as Non-Executive Buys Shares at 119p

Redcentric plc has corrected a previous regulatory announcement regarding a director dealing, confirming that non-executive director Richard McGuire purchased 21,008 ordinary shares at 119 pence each on 23 December 2025. The transaction, conducted on AIM, represents McGuire’s entire current holding and signals personal financial commitment from a board member, a move often closely watched by investors as an indicator of director confidence in the company’s prospects.

The most recent analyst rating on (GB:RCN) stock is a Hold with a £122.00 price target. To see the full list of analyst forecasts on Redcentric stock, see the GB:RCN Stock Forecast page.

Redcentric Corrects Director Share Purchase Price in Regulatory Filing

Redcentric plc has clarified that a previous regulatory announcement on director share dealing contained an error and confirms that non-executive director Richard McGuire purchased 21,008 ordinary shares at 119 pence each on 23 December 2025. The correction ensures accurate disclosure of insider dealings, reinforcing regulatory compliance and transparency for investors regarding board members’ equity positions in the company.

The most recent analyst rating on (GB:RCN) stock is a Hold with a £122.00 price target. To see the full list of analyst forecasts on Redcentric stock, see the GB:RCN Stock Forecast page.

Redcentric Non-Executive Director Increases Stake with Share Purchase

Redcentric plc has disclosed that Non-Executive Director Richard McGuire has purchased 21,008 ordinary shares in the company at a price of 16.25 pence per share, representing his current total holding. The director share purchase, executed on 23 December 2025 on AIM, signals board-level confidence in the company and is likely to be closely watched by investors assessing insider sentiment toward Redcentric’s prospects.

The most recent analyst rating on (GB:RCN) stock is a Hold with a £122.00 price target. To see the full list of analyst forecasts on Redcentric stock, see the GB:RCN Stock Forecast page.

Redcentric Awards One-Off Long-Term Incentive Options to CEO and Chair

Redcentric has granted long-term incentive options to its new chief executive, Michelle Senecal De Fonseca, and a notional share option award to non-executive chair Richard McGuire, structured as one-off grants rather than part of an annual programme. The awards, which vest from December 2028 subject to continued service and demanding total shareholder return performance targets, replace the company’s previous practice of granting annual LTIP awards and leave total outstanding options at 7,881,892 shares, or 4.95% of issued share capital, signalling a more focused, performance-linked approach to board remuneration that may impact management incentives and shareholder alignment over the next three years.

The most recent analyst rating on (GB:RCN) stock is a Hold with a £122.00 price target. To see the full list of analyst forecasts on Redcentric stock, see the GB:RCN Stock Forecast page.