Redcentric PLC (RCM:AIM) reported its interim investor update outlining a transformational year marked by the strategic disposal of its data centre business and a renewed focus on its higher-margin managed services operations. The company has agreed the sale of its data centre assets to a Stellano-backed entity for an enterprise value in the range of £115–127m, with completion targeted for Q1 calendar 2026, materially strengthening the balance sheet, reducing leverage and enabling potential shareholder returns alongside reinvestment. Redcentric is repositioning as a pure-play managed services provider with c.90% recurring revenue, improved earnings quality and strong customer retention across the UK mid-market, public sector and regulated industries. Interim financial results showed modest revenue softness as management prioritised margin discipline, with gross margin improving to 61.6% (from 59.1%), EBITDA margin rising to 13.7% (from 12.8%), and recurring revenue increasing to 90.4%, supporting cash flow visibility. Under new leadership, the company is executing a clear growth strategy focused on cybersecurity, private and public cloud, AI-enabled infrastructure, and partner-led routes to market, including enhanced collaboration with VMware. Operational efficiency initiatives, platform simplification and targeted automation are expected to drive further margin expansion toward the mid-teens over time. With a less capital-intensive model, reduced financing costs and a strengthened management team, Redcentric believes it is well positioned to deliver sustainable growth, improved cash conversion and long-term shareholder value in a highly fragmented UK MSP market.