AdEPT Technology: Half Year Results

12th November 2019 | AdEPT Technology Group PLC

AdEPT (AIM: ADT), one of the UK’s leading independent providers of managed services for IT, unified communications, connectivity, voice and cloud services, announces its unaudited results for the six months ended 30 September 2019.

Highlights

Revenue and EBITDA

  • Total revenue increased by 26% to £30.8 million (2018: £24.4 million)
  • Managed services revenue increased by 39% to £25.1 million (2018: £18.0 million)
  • Managed services revenue up to 82% of total revenue (2018: 74%)
  • EBITDA* increased by 18% to £6.1 million (2018: £5.2 million)
  • EBITDA* margin 20% (2018: 21%)

PBT, EPS and Dividends

  • Adjusted profit after tax** increased by 4% to £3.9 million (2018: £3.7 million)
  • Adjusted fully diluted EPS increased by 4% to 15.3p (2018: 14.6p)
  • Interim dividend increased by 4% to 5.10p per share (2018: 4.90p)

Cash Flow and Debt

  • Reported EBITA conversion to pre-tax cash from operating activities 90% (2018: 82%)
  • Net senior debt at period end of £31.5 million (2018: £25.1 million)
  • £5.2m of funds used to fund Advanced Computer Systems (UK) Limited acquisition in April 2019

Ian Fishwick, Chairman, commented:

“The Group has continued with its transformation into a managed service provider for unified communications and IT whilst bringing the Group closer together under the ‘One AdEPT’ initiative christened ‘Project Fusion’. I am delighted to see the organic revenue growth that has been achieved alongside successfully continuing with our acquisitive growth strategy. The results for the period demonstrate the strength of our capex-light highly cash generative business model which is focused on high levels of recurring revenue.

I am pleased to see the positive results of our efforts, as trading continues to be in line with management’s expectations. We have a fully supportive investor base and funding partners, and in this converging and fragmented marketplace we will continue to pursue our strategy to identify earnings-enhancing acquisitions whilst retaining the ability to continue with our progressive dividend.”

* Earnings before interest, tax, depreciation, amortisation and excluding one off acquisition and restructuring costs and share based payments

** Profit after tax adding back one-off acquisition and restructuring costs, amortisation and share based payments, excluding revaluation of deferred consideration

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