Facilities by ADF PLC (AIM:ADF), which provides serviced production facilities to the UK film and high-end television industry, saw its shares advance 8.26% to 59p on Tuesday morning after an upbeat trading statement revealed positive prospects and a strong order book.
ADF said it delivered “a strong performance” in 2022, its first full year as a listed business, and forecast profits for the year in line with current market expectations.
Revenue for the 12 months to 31 December 2022 is expected to be £31.4mln, up from £27.7mln in 2021, with adjusted EBITDA rising to £7.9mln from £7.7mln.
The company worked on 76 productions last year, up from 39 the year before, including ‘The Crown’ season 5, ‘Slow Horses’, ‘Everything I know about Love’, ‘The Sandman’, ‘Marvels Secret Invasion’, ‘I Hate Suzie’, ‘Sex Education’, ‘Happy Valley’, ‘Troubled Blood’ and ‘A Spy Amongst Friends’.
The average revenue per production totalled £390,000 compared with £682,000 in 2021. The reason for the lower figure was that the first half of 2022 saw a larger number of shorter productions (46 in total) with a greater geographical spread, leading to additional budgeted transport costs. In the second half, the company worked on productions that were larger and more clustered around London.
The order book for 2023 indicates a continuation of the trend of larger productions with a higher revenue per job, ADF said.
The company said its order book is strong and growing, boosted by continued robust demand for film and high-end TV in the UK. It is currently taking orders for quarter four of full-year 2023, and looking ahead “the order book remains strong with increasing revenue visibility”.
The company has opened its new flagship five-acre operational hub at Longcross, Surrey, which it said is "perfectly located to serve all major studios” nearby, including Shepperton Studios, Pinewood Studios, Leavesden Studios, and Elstree studios.
"The prospects for ADF are increasingly positive and we have entered FY23 in a very strong position with considerable momentum across the business,” commented CEO Marsden Proctor.
“We have a growing addressable market, an expanding network of contacts, an enhanced offering and a high-quality business model driving growth in group revenue. These factors, coupled with a strong order book, underpin the board's confidence in the long-term success of ADF," he added.