Shares in Facilities by ADF PLC (AIM:ADF) tumbled 26% in early trading on Tuesday after the company warned that 2025 revenue and profits would fall well below market expectations.
The film and TV production support firm is still feeling the knock-on effects of last year’s Hollywood writers' and actors' strikes, which caused widespread delays.
For 2024, ADF expects revenue of £35.2m, slightly up from £34.8m the previous year, with £2.6m of that coming from its recent acquisition of Autotrak Portable Roadways. Adjusted earnings were steady at £7.2m, but net debt stood at £13.7m.
Although delayed productions are now resuming and industry demand is picking up, clients are booking at shorter notice and keeping a close eye on budgets.
ADF still expects 2025 revenue to be significantly higher than last year but admits it will miss forecasts. The company is banking on high-profile productions like Avengers, Spiderman, Harry Potter, and Slow Horses to drive growth later in the year.
The stock fell 7.39p to 20.61p.