AdEPT Telecom plc Trading Update (4346B)
April 04 2017 - 2:00AM
UK Regulatory
TIDMADT
RNS Number : 4346B
AdEPT Telecom plc
04 April 2017
AdEPT Telecom PLC
("AdEPT" or the "Company")
Trading Update
AdEPT Telecom plc, one of the UK's leading independent providers
of unified telecommunications and IT solutions, today announces a
trading update for the year ended 31 March 2017 (ahead of its final
results which are expected to be announced in early July 2017).
-- Net borrowings of GBP15.8m were GBP1.3m lower than consensus market expectations
-- Underlying EBITDA increase of around 26% will be ahead of
market expectation of a 18% rise year-on-year
-- Board recommendation of an increased final dividend of 4.00p (2016: final 3.50p)
-- Total dividends proposed for the year of 7.75p represents an
increase of 19% over the prior period
Trading performance
The Company is pleased to announce that it anticipates that
underlying EBITDA will be around 26% ahead of the previous year
(ahead of the market consensus expectation of an 18% rise
year-on-year). Turnover is expected to be approximately 16% ahead
of the previous year and above market consensus expectation.
Cash flow and net debt
Net borrowings of GBP15.8m as at 31 March 2017 were GBP1.3m
lower than market expectations. AdEPT continues to generate
consistently strong free cash flow. This improved performance in
debt reduction is after payment of (i) GBP9.7m aggregate initial
consideration for the acquisitions of Comms Group UK Limited, CAT
Communications Limited and OurIT Department Limited, (ii) GBP3.0m
deferred consideration for the acquisition of Centrix Limited and
(iii) a GBP0.4m increase in dividends paid in the year.
Dividends
AdEPT announced an interim dividend of 3.75p per share in its
September 2016 interim statement, which will be paid to
shareholders on 7 April 2017. The Board today announces that as a
result of strong free cash flow and trading results it recommends
an increased final dividend of 4.00p (2016: 3.50p) per Ordinary
Share which, subject to Shareholder approval at the Annual General
Meeting later in the year, will be paid in October 2017. Total
dividends proposed for the year ended 31 March 2017 of 7.75p per
Ordinary Share represent a 19% increase year-on-year (2016:
6.50p).
This announcement contains inside information.
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 3861 6625
About AdEPT Telecom plc:
AdEPT Telecom plc is one of the UK's leading independent
providers of unified communications solutions. The Company provides
a complete communications portfolio of fixed line calls, line
rental, mobile, IP telephony, equipment installation, managed
services, IT services, Wi-Fi, IT and communications hardware and
data connectivity products. AdEPT's tailored services are used by
thousands of customers across the UK and are brought together
through the strategic relationships with tier-1 suppliers such as
BT Openreach, Vodafone, Virgin Media, Avaya, Microsoft, Dell and
Apple.
AdEPT is listed on the London Stock Exchange (Ticker: ADT). 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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