IT firm boss resigns after 'disappointing' results
The boss of IT managed services provider Redcentric has resigned after the AIM-listed company posted a set of "disappointing" results.
Redcentric generated revenue of £47.5 million for the six months to 30 September 2018, down from £51.4 million a year earlier.
Adjusted earnings (EBITDA) fell by £1 million to £8.1 million and gross profit declined from £30.5 million to £28.4 million.
CEO Chris Jagusz has stepped down from the board and left his post immediately. CFO Peter Brotherton will assume chief executive responsibilities until a successor is found.
"The results announcement today, whilst showing Redcentric's resilience, does not demonstrate progress with regard to sales, delivery and execution," said chairman Chris Cole.
"The board has therefore decided that Redcentric's growth ambitions would be better served with a change of leadership.
"We have therefore taken the decision that Chris Jagusz will leave us forthwith. We would like to thank Chris for his efforts."
In a London Stock Exchange statement, Redcentric said the decline in revenue "despite initiatives to reverse this is a source of particular disappointment".
However, Cole stressed that the company made "strong progress" with its programme of driving operational efficiencies, cost control and cash discipline.
"This work has led to a leaner, more efficient business and one that is able to respond more quickly in a dynamic industry," he said.
Looking ahead, Redcentric outlined two strategic priorities: The first is to continue streamlining the business where there is potential for further cost savings and the second is returning the business to organic revenue growth.