REDSTONE PLC "Redstone" or "the Group")
Preliminary Results for the Year ended 31 March 2006
Redstone (AIM:RED.L), today announces its financial results for the year ended 31 March 2006.
* Revenues up by 46.2% to £72.5m (FY05: £49.6m)
* Gross Margin up by 49.5% to £26.2m (FY05: £17.5m)
* Gross Margin percentage up to 36.1% from 35.3%
* Operating loss reduced by 39.3% to £1.7m from £2.8m *
* £2.1m EBITDA profit in the second half year following a £2.0m EBITDA loss in the first half year resulting in break-even
EBITDA for the year **
* Cash flow positive in fourth quarter
* £16.5m revolving debt facility agreed with Barclays
* Announcement of offer for Symphony Telecom Holdings plc ("Symphony")
* before goodwill impairment, amortisation of intangibles and restructuring costs
** before goodwill impairment, amortisation of intangibles, restructuring costs and share based payment charges
* the acquisition and integration of Xpert Group Limited at the end of April 2005;
* four autonomous business units have been established each with their own management, sales, operations and administration
* more than £8m of overheads have been removed from the business in this financial year;
* growth in revenues and gross margin;
* generating EBITDA profits in the second half and becoming cash flow positive in the last quarter; and
* announcing the offer for Symphony.
Martin Balaam, Chief Executive Officer, Redstone, commented,"This has been an excellent year for the Redstone Group that has included some very significant achievements. The business has been transformed, both culturally and organisationally, and is now well positioned to become a leader in the IT and communications solutions market place. It is almost exactly a year since I was appointed as Chief Executive Officer and the single most fundamental principle that I have firmly stamped onto the Redstone Group has been to focus on profit. The outlook for the group is positive and the Board remains committed to delivering revenue and EBITDA growth."
Tel. +44 (0)845 200 2200
Martin Balaam, Chief Executive Officer
Tim Perks, Chief Financial Officer