UK collocation provider announces net cash position of £7.8M, EBITDA improvement of more than 70% over the last 10 months

January 20, 2004

2 Min Read

LONDON -- Redbus Interhouse, Europe's most advanced, independent colocation and managed services provider, today announces that it has cash in excess of £7.8 million, giving the company a significant cash balance and virtually no debt.

£4.3 million has been secured from existing shareholders and the company has now received a further £0.9 million from funds held in relation to its Nashville property. This means that, in addition to Redbus Interhouse's existing cash resources at 31 December 03, the company's net cash position is an extremely healthy £7.8 million. Steps also continue towards the sale of the Nashville property and it is anticipated that it will be sold in excess of £1.5 million.

Despite the economic downturn, Redbus Interhouse has made significant progress against the background of such a challenging market. Much has been achieved since June 2002, when Mike Tobin, CEO of Redbus Interhouse, introduced a new corporate strategy to take the company forward and enhance its operating performance. Significant improvements have been made with the recurring contracts base growing as of October 2003 to over £13.1 million. This, together with a tight control on costs, generated an improvement in Redbus Interhouse's EBITDA over the last 10 months of more than 70%.

Simon Neal, UK Country Manager, Redbus Interhouse (UK) Ltd, commented: "With over 60 ISPs present in our data centres and over 300 contracts signed up in the UK alone in the last 12 months, we understand that it's imperative that our customers feel reassured not only that they are getting the best service in the industry from us, but that we are financially strong too. Obviously we are delighted with Redbus Interhouse's sound cash position, which emphatically deals with our funding requirements and will give our UK customers and prospects alike the confidence they need to know that their mission-critical activities are secure with Redbus Interhouse. Being in such a position of financial strength, combined with our service levels and flexibility, which are second to none, puts us heads and shoulders above the competition."

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