RedstoneConnect PLC Business Update (5987T)
January 09 2017 - 2:00AM
UK Regulatory
TIDMREDS
RNS Number : 5987T
RedstoneConnect PLC
09 January 2017
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014
9 January 2017
RedstoneConnect plc
("RedstoneConnect" or the "Company")
Business Update
- Strong trading continued in H2
- Adjusted EBITDA* for the year ended 31 January 2017 at upper end of market expectations**
- Smart software solutions, infrastructure and managed services all experiencing strong demand
- Order book and sales pipeline underpinning medium term growth expectations
RedstoneConnect (AIM: REDS), a leading provider of technology
and services for smart buildings and commercial spaces, is pleased
to announce that trading has continued to be strong in the second
half of the current financial year and consequently the Board now
expects Adjusted EBITDA* for the year ending 31 January 2017 to be
at the upper end of market expectations**.
Smart software solutions
The Company's smart software solutions continue to gain market
traction with encouraging levels of customer engagement.
RedstoneConnect's ability to secure new software income, which is
typically achieved through annuity based contracts with higher
margins, is a key constituent of the Company's growth strategy.
OneSpace(TM) , the Company's occupancy management tool, is now
ready for full commercial deployment following investment during
2016 and an experienced sales force has been recruited. Notable
milestones include its deployment at UBS's new flagship London
office at 5 Broadgate, deemed to be the smartest building in London
and the extension of the Company's relationship with UBM to upgrade
and extend OneSpace(TM) to UBM's offices in New York.
The Company also signed an agreement with Philips Lighting under
which it will integrate Philips Lighting systems into OneSpace(TM)
and together market and deliver connected smart office
solutions.
In addition, following the success of the initial design phase
RedstoneConnect has secured the mandate for the deployment of its
smart parking, smart retail and wayfinding applications as part of
the smart city project in Milton Keynes.
Network infrastructure and managed IT services
RedstoneConnect continues to see strong demand from both new and
existing blue chip customers for its design and installation of
network infrastructure and managed IT services. This demand
underpins a considerable order book and sales pipeline. Having
already signed a 5 year contract renewal in the first half with one
of the world's leading financial institutions, the Company has
expanded an existing managed services contract with the same
customer to include the provision of IT infrastructure management
services across a number of campus buildings. The contract
extension is valued at GBP8.4 million over three years.
In addition, the Company has also signed the renewal and
expansion of a three year managed services contract, worth
approximately GBP5.4 million, with a tier one global investment
bank.
Acquisition of Commensus
The Company is also pleased to report that Commensus, a leading
provider of fully managed IT support services, which was acquired
in November 2016, is now fully integrated. Commensus has already
won three important new customers since its acquisition and will be
earnings enhancing in its first full year of ownership.
Mark Braund, CEO of RedstoneConnect, commented:
"We are delighted to report excellent progress across the Group
with significant momentum continuing in the second half. We have
secured a number of new business mandates within our infrastructure
and managed IT services division and continue to deliver high
quality contracts through our software solutions for smart
buildings. The Board is confident that this will, in time,
transform the future earnings potential of the Company.
"We now have a well-structured and cost efficient operational
base and a substantial new business pipeline. The board therefore
looks forward to the future with great confidence."
* Results for the period from continuing operations before net
finance costs, depreciation, amortisation, integration and
transactional items, impairment charges and share based payment
charge.
** Adjusted EBITDA market expectations for the year ending 31
January 2017 are between GBP1.5 million to GBP1.8 million.
Enquiries:
RedstoneConnect Plc via Vigo Communications
Mark Braund (CEO)
Spencer Dredge (CFO)
Cantor Fitzgerald Europe (Nominated
Adviser & Joint Broker)
Marc Milmo/Phil Davies/Catherine +44 (0)20 7894
Leftley/Callum Butterfield 7000
Whitman Howard Limited (Joint Broker) +44 (0)207 659
Nick Lovering 1234
Vigo Communications (Financial
Public Relations)
Jeremy Garcia / Ben Simons / Antonia
Pollock +44 (0)20 7830
reds@vigocomms.com 9700
About RedstoneConnect
RedstoneConnect is focused on technologies that make real estate
more efficient and businesses more effective. Its businesses,
Redstone, Connect IB and Commensus, provide the infrastructure
capabilities and the software applications to deliver smart
building and smart workspace solutions for commercial businesses,
public sector organisations, real estate owners and managers. Visit
our website at www.redstoneconnectplc.com.
This information is provided by RNS
The company news service from the London Stock Exchange
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