# RedstoneConnect Plc Another year of continued progress across all our business units

- Link: https://www.directorstalkinterviews.com/redstoneconnect-plc-another-year-continued-progress-across-business-units/412751828
- Published: 2018-05-29T07:09:00+01:00
- Author: Giles Arbor

**RedstoneConnect Plc** (LON:REDS), a leading provider of technology and services
for smart buildings and commercial spaces, announced today its final results for
the year ended 31 January 2018.

**Financial Highlights:**

· Revenue up 15% to £47.6 million (2017: £41.5 million)

· Gross profit up 45% to £13.4 million (2017: £9.2 million), with an increased gross
margin of 28% (2017: 22%)

· Adjusted EBITDA* up 60% to £3.2 million (2017: £2.0 million) reflecting the successful
implementation of the strategy to focus on higher quality, higher margin business

· Adjusted profit before tax** of £2.4 million (2017: £1.3 million)

· Profit before tax from continuing operations of £1.5 million (2017: £1.2 million)

· Profit after tax from continuing operations of £1.5 million (2017: £1.8 million)

· Cash at year end of £3.4 million (2017: £3.2 million) and net cash of £1.2 million(
2017: £0.8 million)

· Basic earnings per share from continuing operations of 7.72 pence (2017: 11.14
pence)

· Adjusted earnings per share from continuing operations 12.81 pence (2017: 13.13
pence)

* profit for the period from continuing operations before net finance costs, tax,
depreciation, amortisation, integration costs and transactional items, impairment
charge and share based payments.

** adjusted profit before tax is before: integration costs and transactional items,
impairment charge, share based payments and amortisation recognised as a result 
of purchase price allocation under IFRS.

**Operational Highlights:**

· In May 2017, completed a successful placing to raise £6.5 million, of which £1.4
million was used to acquire Anders + Kern (“A+K”), a systems and solutions integrator
specialising in meeting room management and audio-visual solutions:

o Integration of A+K is now complete, providing the Group with an indirect sales
channel to sell the Group’s meeting room and space management software solutions
to small and mid-sized clients, both in the UK and overseas

o A+K made a positive contribution to the Group’s performance in the year

· £1.2 million of proceeds have been invested in development of the Group’s software
platform:

o In December 2017 we released OneSpace Link, a locally installed meeting room management
solution which integrates with Microsoft Outlook

o Ongoing development of a full web-based meeting room management tool which will
be offered as a module of the OneSpace platform

o Continued development of our OneSpace platform adding to existing modules which
include desk management, wayfinding, car parking, visitor management, frictionless
vending and space management

· OneSpace continues to gain traction. In December 2017, we announced a deal with
a market-leading global technology business to provide an Original Equipment Manufacturer(“
OEM”) version of our platform. This deal was worth £2.25 million, our largest single
contract for OneSpace thus far

· Continued strong performance and levels of renewals from our Managed Services 
division

· Agreements secured in the year for the Company’s innovative in-Building Cellular(“
IBC”) and Distributed Antenna Systems (“DAS”) solutions

**Post Year End:**

· Announced the proposed sale of the Systems Integration and Managed Services divisions
for a total consideration of £23.0 million comprising; £19.6 million payable in 
cash on completion; £2.0 million payable on or before 30 November 2018, subject 
to completion of an already contracted project by Redstone Converged Solutions Ltd;
and the waiver of loans owed by the Company to the divisions of £1.4 million. Owing
to its size the disposal requires the approval of shareholders

· This disposal will allow the Group to focus on developing and growing the Company’s
software proposition in the smart building and co-working space markets both in 
the UK and internationally

> **Mark Braund, CEO of RedstoneConnect Plc, commented:** “I’m pleased to report
> another year of continued operational and strategic progress across all our business
> units. We closed the year showing strong revenue and EBITDA growth, boosted by
> organic initiatives and the positive impact of bolt-on acquisitions.
> However, following the disposal of our Systems Integration and Managed Services
> divisions, our core focus now shifts to accelerating our exposure to the provision
> of software solutions that support smart buildings and commercial spaces.
> Employee mobility and agile working is driving demand as commercial real estate
> becomes more of a user experience business. We firmly believe that the significant
> global demand for workspace management solutions coupled with the market leading
> suite of services already being deployed within our software division, creates
> an ideal base from which to accelerate our growth.
> Our strategic focus on creating greater levels of recurring, annuity based revenues,
> and improving the earnings visibility of the Group, underpins the Board’s commitment
> to becoming a fast-growing workspace management software company delivering long
> term shareholder value.”

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