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Redstone to save a further £900k in cost-trimming exercise

Alex Scroxton

business growth profit concept.jpgCloud and network integrator Redstone has said it will look to make further cost savings ofaround £900,000 per annum in response to unpredictable economic conditions.

In an interim trading statement for the full-year to 31 March, Redstone said that lengthening sales cycles had lead it to keep a close eye on its overheads, and re-align its cost base in response to the lower level of activity in the project market.

However, it said, encouragingly it had already contracted 50% of its expected non-recurring sales for the 12 months to 31 March 2013, a "materially better position than a year ago".

There was more good news from chief exec Tony Weaver, who told the City that full-year 2012 trading and EBITDA had been in line with market expectations, thanks to growing recurring annuity sales in its Connectivity business, its star performing unit.

"The underlying strength and quality of the Redstone brand and business are now beginning to deliver the results Ian Smith and I believed possible when we invested in 2010," said Weaver.

"This strength is evidenced by contract wins announced throughout the year that have totalled in excess of £45m," he added.

Notweorthy wins include a £730,000 infrastructure project to revamp an investment banking group's UK datacentre, and a £224,000 cabling project for another financial services client.

It also plumbed in a new cloud infrastructure-as-a-service for RIBA Enterprises to support the architectural body's web environments, potentially saving it £100,000 in IT maintenance and hardware costs through to 2015.


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