Redcentric shares jump on potential sale of data centre operations

(Sharecast News) - Shares in Redcentric jumped on Friday after the IT managed services provider confirmed press speculation about the potential sale of its data centres division.

"Redcentric plc confirms that it is in the advanced stages of discussions concerning the potential sale of this business unit," the company said in a statement on Friday afternoon.

"However, there can be no certainty that a transaction will occur and further updates will be provided as appropriate."

Last year, Redcentric announced that it would create two autonomous business units, splitting its managed service provider operations from its data centre unit.

However, at the time of its half-year results in November, Redcentric said it continued to make upgrades to its data centres division, which generates around a quarter of group revenues after a period of solid growth.

The news comes just three days after Redcentric appointed a new chief financial officer. Tony Ratcliffe, who has over 25 years of senior financial management experience in technology and service companies, joined the firm with immediate effect, replacing CFO David Senior who announced his resignation in January.

Meanwhile in May, the company appointed non-executive director and former Vodafone exec Michelle Senecal De Fonseca as its new chief executive, replacing Peter Brotherton who stepped down after nine years at the helm.

Shares were nearly 15% higher at 140.05p by 1449.