TIDMADT
RNS Number : 5381O
AdEPT Technology Group PLC
10 February 2021
AdEPT Technology Group PLC
("AdEPT" or the "Company" together with its subsidiaries the
"AdEPT Group")
Q3 Trading Update, Capital Markets Day and Board Changes
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 Q3 of the
current financial year ending 31 March 2021.
Resilience supports reinstating guidance
In the September 2020 interim results announcement we noted the
incredible resilience of the AdEPT business model despite the
headwinds created by the unique challenges posed by the COVID-19
pandemic. Whilst a number of these challenges remain, given that we
are currently in a UK-wide lockdown, the resilience of the AdEPT
business model has been maintained and the Company is pleased to
announce that it is reinstating guidance for the current year
outturn and the year ending 31 March 2022. Professional investors
who wish to view the research note published by the Company's
Nominated Adviser & Broker can do so by subscribing to the
Research Tree website here: AdEPT Research
Q3 (Sep-Dec 2020) trading update
Trading in Q3 of the current financial year (October to December
2020) remained resilient and in line with management expectations,
with the Q3 total revenue higher than the average achieved in the
two quarters in the period ended 30 September 2020. New sales order
volumes remained at a healthy level, business call volumes started
to return post-Summer, the project delivery team remained focused
on the rollout of key customer projects and the onsite resources,
such as school technicians, returned to customer premises where
permitted and safe to do so. During Q3 the Company did not make use
of the Coronavirus Job Retention Scheme due to sustained customer
demand and has no intention of using the scheme during Q4.
The Company continued to focus on cash management in Q3, part of
which includes continual monitoring of leading indicators, such as
customer credit. This focus led to a further improvement in
customer credit collection from the 33 days achieved in September
2020 to 28 days at 31 December 2020. The Company has been able to
utilise the positive cash flow to reduce its senior borrowings in
Q3 by GBP1 million and the Company has since repaid the deferred Q1
VAT liability at the start of Q4. Furthermore, the Company does not
have any outstanding deferred acquisition payments due.
Project Fusion
In Q3, AdEPT has made further progress on the 'One AdEPT'
project ('Project Fusion') to bring together the sales, marketing,
financial control and operating systems. Since September 2020, a
further operating division has been migrated to the centralised CRM
and finance platforms. This achievement means that 6 of the 8
operating sites are now benefitting from Project Fusion, with over
60% of Group employees now using the platform. The final remaining
operating divisions' migration is due to go live in April 2021.
During Q3 AdEPT has been further developing its service
offerings for the benefit of customers in three specific areas:
-- AdEPT Consulting - an initiative to help customers move to a
secure environment for their workforce across disparate locations,
in a cloud enabled landscape. This team is focusing on; security
risk assessments, cloud migrations and network resilience.
-- Extending cloud services - providing hosted SIMS for
education clients and hosted Sage for small to medium enterprises,
deployed on the AdEPT Nebula platform.
-- Strengthening AdEPT Nebula - Nebula is the AdEPT owned
platform that supports over 250 customers who take various services
from our portfolio of: Nebula Cloud, Nebula Security, Nebula BC/DR,
Nebula Voice, Nebula Apps and Nebula Network.
Delivering despite Covid-19 restrictions
Despite the challenges of being in and out of lockdown over the
last 10 months, AdEPT has continued to deliver business critical
services to its customer base, including some key projects as
follows:
AdEPT supports Department for Education (DfE)
AdEPT Education is one of a limited number of accredited
suppliers in the country that are able to help schools migrate to
the cloud platforms of both Google and Microsoft on the Google G
Suite for Education and Microsoft Office 365 Education platforms
respectively. In support of the DfE initiative, AdEPT has digitally
enabled more than 500 schools; cloud enabling schools to help them
with remote education. The valued partnerships established as part
of this initiative will allow AdEPT to roll out digital education
platforms as well as additional upsell services such as; managed
support contracts, migration of content, maintenance and project
work on these cloud platforms.
AdEPT Education is now ideally positioned to offer user training
to teachers and technical users of these platforms to help further
support them thought the pandemic lockdown measures, and
beyond.
AdEPT helps NHS deliver technology transformation
With its mission of 'uniting technology, inspiring people',
AdEPT Technology Group has helped the NHS succeed in a major
technology transformation. AdEPT provided Health & Social Care
Network (HSCN) connectivity across the UK, with the most
concentrated success being a programme across the entire Kent NHS,
in a contract valued in excess of GBP4m. This programme provided
connections to over 400 care homes, hospitals, and doctors'
surgeries in a project that will be of huge benefit to clinicians
and the public at large.
The legacy N3 network, replaced by the HSCN, was eventually
switched off in November 2020 ultimately saving the NHS an
anticipated GBP75m a year, and triggered the following complements
from the NHS for AdEPT;
"On behalf of NHS Digital, I wish to express my sincere
gratitude to AdEPT for your co-operation in driving HSCN migration
activity. I have no doubt that without your organisation's hard
work and commitment we would not have arrived at this point so
soon." Patrick Clark, Associate Director of Infrastructure Services
at NHS Digital.
Capital Markets Day
In the run up to year end, AdEPT will be hosting a Capital
Markets Day in March 2021 for any investors who are interested in
gaining a greater insight into recent activities from the
perspective of customers, suppliers and the vendors of businesses
acquired by AdEPT. Further details on how to access the event can
be obtained from the Company's Nominated Adviser and Broker, N+1
Singer.
Board Changes
The Company is also pleased to announce that Christopher
Kingsman, former Non-Executive Director of AdEPT will be rejoining
the Company's Board effective from 1 March 2021.
Year-end trading update
We will provide a further trading update in early April 2021 in
respect of the trading results for the year ended 31 March 2021
which are expected to be announced in July 2021.
Enquiries:
AdEPT Technology Group Plc
Ian Fishwick, Chairman 07720 555 050
Phil Race, Chief Executive 07798 575 338
John Swaite, Finance Director 01892 550 243
N+1 Singer
Nominated Adviser & Broker
Shaun Dobson / Iqra Amin 020 7496 3000
About AdEPT Technology Group plc:
AdEPT Technology Group plc is one of the UK's leading
independent providers of managed services for IT, unified
communications, connectivity and voice solutions. 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, 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.co.uk
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