TIDMADT

RNS Number : 1117U

AdEPT Telecom plc

05 April 2016

AdEPT Telecom PLC

("AdEPT" or the "Company")

Trading Update

AdEPT Telecom plc, one of the UK's leading independent providers of voice, data and unified telecommunications solutions, today announces a trading update for the year ended 31 March 2016 (ahead of its final results which are expected to be announced in early July 2016).

   --     Net borrowings of GBP6.2m were GBP0.8m lower than consensus market expectations

-- Underlying EBITDA increase of around 33% will be ahead of market expectation of a 30% rise year-on-year

   --     Board recommendation of an increased final dividend of 3.50p (2015: final 2.50p) 
   --     Total dividends for the year of 6.50p represents an increase of 37% over the prior period

Trading performance

The Company is pleased to announce that it anticipates that underlying EBITDA of around GBP6.15m will be around 33% ahead of the previous year (ahead of the market consensus expectation of a 30% rise year-on-year). Turnover is expected to be approximately 30% ahead of the previous year and above market consensus expectation.

Cash flow and net debt

Net borrowings reduction was GBP0.8m better than market expectations being reduced to GBP6.2m as at 31 March 2016. AdEPT continues to generate consistently strong free cash flow. This improved performance in debt reduction is after payment of (i) GBP7.0m initial consideration for the acquisition of Centrix Limited, (ii) GBP0.2m deferred consideration for the acquisition of Bluecherry Telecom Limited and (iii) a GBP0.4m increase in dividends paid in the year.

Dividends

AdEPT announced an interim dividend of 3.00p per share in its September 2015 interim statement, which will be paid to shareholders on 8 April 2016. The Board today announces that as a result of strong free cash flow and trading results it recommends an increased final dividend of 3.50p (2014: 2.50p) per Ordinary Share which, subject to Shareholder approval at the Annual General Meeting later in the year, will be paid in October 2016. Total dividends for the year ended 31 March 2016 of 6.50p per Ordinary Share represent a 37 % increase year-on-year (2015: 4.75p).

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        020 3861 6625 
 Nominated Adviser 
  Edward Hutton/Gerry Beaney 
 Broking 
  John Howes/Abigail Wayne

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 unified communications portfolio of fixed line calls, line rental, mobile, broadband, data connectivity products, hardware, managed services, Wi-Fi and IP telephony.

AdEPT currently holds 4 Government Telecom Framework agreements: ESPO (local government), Crown Commercial Service Network Services RM1045 (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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April 05, 2016 02:00 ET (06:00 GMT)

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