IT services provider Redcentric (LON:RCN) has seen its shares drop to 92.55p, a 7.45% decline from this morning’s opening price. Management said that results for the year ended 31st March were in line with expectations but issued a warning about the current financial year. The firm has lost a number of public sector hosting contracts and new business sales have been weak recently, which will have an impact on 2019 profits.
The firm also warned that some of the new contracts that the company has signed have front-weighted costs, meaning that there will be some negative impact on short-term earnings, but the deals will be highly profitable over their full durations. The company is already taking steps to mitigate the drop in profits by cutting costs where possible and seeking operating efficiencies.