TIDMADT

RNS Number : 3542J

AdEPT Telecom plc

07 April 2015

AdEPT Telecom PLC

("AdEPT" or the "Company")

Trading Update

AdEPT Telecom plc, one of the UK's leading independent providers of voice and data telecommunications solutions, today announces a trading update for the year ended 31 March 2015 (ahead of its final results which are expected to be announced in early July 2015).

-- GBP1.4m (47%) reduction in net borrowings to GBP1.6m was GBP1.1m better than consensus market expectations

   --     EBITDA increase in line with market expectation of 14% rise year-on-year 
   --     Board recommendation of an improved final dividend of 2.50p (2013: final 1.50p)

-- Total dividends declared for the year of 4.75p represents an increase of 58% over the prior period

Trading performance

The Company is pleased to announce that it anticipates that underlying EBITDA will be ahead of the previous year and in line with the market consensus expectation of a 14% rise year-on-year. Adjusted* profit before tax is expected to be ahead of the prior year and in line with market consensus expectation. Turnover is expected to be nearly 6% ahead of the previous year but slightly below market expectations.

* adjusted for amortisation and share option costs

Cash flow and net debt

The reduction in net borrowings in the year of GBP1.4m (47%) was significantly ahead of market expectations being reduced to GBP1.6m as at 31 March 2015. AdEPT continues to generate consistently strong free cash flow. This reduction in debt is after payment of (i) GBP0.36m deferred consideration for the acquisition of customer contracts from Bluebell Telecom Limited, (ii) GBP1.78m initial consideration for the acquisition of Bluecherry Telecom Limited and (iii) a 108 per cent. increase in dividends paid.

Dividends

AdEPT announced an interim dividend of 2.25p per share in its September 2014 interim statement, which will be paid to shareholders on 10 April 2015. The Board today announces that as a result of strong free cash flow it recommends an improved final dividend of 2.50p (2013: 1.50p) per Ordinary Share which, subject to Shareholder approval at the Annual General Meeting later in the year, will be paid in October 2015. Total dividends declared during the year ended 31 March 2015 of 4.75p per Ordinary Share represent a 58 per cent. increase year-on-year (2013: 3.00p).

For more information please contact:

 
 AdEPT Telecom Plc 
  Roger Wilson, Chairman                 07786 111 535 
  Ian Fishwick, Chief Executive          01892 550 225 
  John Swaite, Finance Director          01892 550 243 
 Northland Capital Partners Limited 
 
  Nominated Adviser 
  Edward Hutton / Gerry Beaney 
 
  Broking 
  John Howes                             020 7382 1100

About AdEPT Telecom plc:

AdEPT Telecom plc is one of the UK's leading independent providers of voice and data telecommunications solutions. The Company provides a complete communications portfolio of fixed line calls, line rental, broadband, mobile, VoIP and data connectivity products.

AdEPT currently holds 4 Government Telecom Framework agreements: ESPO (local government), Crown Commercial Service RM1035 (central government), G-Cloud 6 and JANET (universities and colleges).

AdEPT's tailored services are used by thousands of businesses customers across the UK and are brought together through the strategic relationships with tier-1 suppliers such as BT Openreach, Vodafone, Virgin Media and TalkTalk Business.

AdEPT Telecom is listed on the London Stock Exchange (Ticker: ADT.L). For further information please visit: www.adept-telecom.co.uk

This information is provided by RNS

The company news service from the London Stock Exchange

END

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