Networking services provider Redstone has cut its operating losses by over 50% to £458,000 during the six months to the end of September, with £4000,000 attributed from the write-off of loan notes outstanding from its disposal of the struggling RMS security business, which was sold on again in October.
Net losses from continuing and discontinued operations came in at £1.7m, a vast improvement on last year's figure of £3.5m and a clear indication that the company has succeeded in dragging itself back from the brink.
Redstone successfully grew its total revenues by £4.6m, or 14.3%, to £36.5m, with project revenues accounting for £18m or sales, and annuity revenues for £18.6m, up 29.5% and 2.7% respectively. Underlying revenues, without accounting for the impact of the Fujin Systems acquisition, grew by £3.1m or 9.5%.
Adjusted EBITDA was also heading in the right direction, up to £1.9m after costs.
It also booked significant contract wins with cumulative revenues in excess of £40m expected over the next five years.
"The restructuring undertaken in the previous financial year has enabled the businesses to trade profitably," said chief executive Tony Weaver.
"Despite the difficult market conditions we continue to rebuild business revenue. Our sales team is at full complement for the first time in almost two years. We have also invested in the Portsmouth MAN, which is now fully-operational and will provide opportunities for growth," added non-executive chairman Richard Ramsay.
However, he warned, the firm was likely not completely out of the woods, as there was still "enormous uncertainty as to how significantly the global debt crisis will ultimately impact UK business."