AdEPT Telecom plc Trading Update (8671J)
April 05 2018 - 2:00AM
UK Regulatory
TIDMADT
RNS Number : 8671J
AdEPT Telecom plc
05 April 2018
AdEPT Telecom PLC
("AdEPT" or the "Company")
Trading Update
AdEPT (AIM: ADT), one of the UK's leading independent providers
of managed services for IT, unified communications, connectivity
and voice solutions, today announces a trading update for the year
ended 31 March 2018 (ahead of its final results which are expected
to be announced in early July 2018).
-- Net senior debt of GBP18.05m was lower than market expectations
-- Underlying EBITDA increase will be slightly ahead of market
expectation of a 23% rise year-on-year
-- Board recommendation of an increased final dividend of 4.50p per share (2017: final 4.00p)
-- Total dividends proposed for the year of 8.75p per share
represents an increase of 13% over the prior period
Trading performance
The Company is pleased to announce that it anticipates that
underlying EBITDA will be slightly ahead of the market consensus
expectation of a 23% rise year-on-year. Turnover is also expected
to be above market consensus expectation of a 29% rise
year-on-year.
The deferred consideration period in relation to the acquisition
of Our IT Department Limited ended on 31 January 2018 and we are
pleased to announce that the results for the 12 month
post-acquisition period exceeded the maximum consideration
threshold. The deferred consideration for Our IT Department Limited
of GBP3.65 million will be paid in early April 2018.
Cash flow and net debt
Net senior debt of GBP18.05m as at 31 March 2018 was lower than
market expectations which arises largely from the timing of the
payment of deferred consideration in relation to Our IT Department
Limited being made after year end, combined with the impact of
EBITDA being ahead of market expectation. AdEPT continues to
generate consistently strong free cash flow conversion from EBITDA
with a capital asset light model.
Cash flow generation in the year is after payment of (i)
GBP12.14m aggregate initial consideration for the acquisition of
Atomwide Limited, (ii) GBP3.46m deferred consideration for the
acquisition of Comms Group (UK) Limited and (iii) a GBP0.38m
increase in dividends paid in the year.
Dividends
AdEPT announced an interim dividend of 4.25p per share in its
September 2017 interim statement, which will be paid to
shareholders on 7 April 2018.
The Board today announces that as a result of strong free cash
flow and trading results it recommends an increased final dividend
of 4.50p (2016: 4.00p) per share which, subject to Shareholder
approval at the Annual General Meeting later in the year, will be
paid in October 2018. Total dividends proposed for the year ended
31 March 2018 of 8.75p per share represent a 13% increase
year-on-year (2017: 7.75p).
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/Tom Price
Broking
John Howes 020 3861 6625
About AdEPT Telecom plc:
AdEPT Telecom plc is one of the UK's leading independent
providers of managed services for IT, unified communications,
connectivity and voice solutions. The Company provides a complete
communications portfolio of unified communications, IP telephony,
IT services, equipment installation, managed 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 Openreach, BT Wholesale, Virgin Media,
Avaya, Microsoft, Dell and Apple.
AdEPT is listed on the London Stock Exchange (Ticker: ADT). For
further information please visit: www.adept.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
END
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