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AdEPT Technology continues brand unification as acquisitions begin to pay off

Snapshot

  • Non-network based telecommunications company

  • Provides fixed line calls, line rental, telephony, and broadband

  • Serves variety of sector including education and government

Data stream

Quick facts: AdEPT Technology Group PLC

Price: 325 GBX

LSE:ADT
Market: LSE
Market Cap: £77.03 m
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What AdEPT does

AdEPT Technology PLC (LON:ADT) is a non-network based telecommunications company that provides fixed line calls, line rental, telephony, and broadband to business and residential customers.

The group serves a wide variety of sectors in the UK including health, education and government as well as both small and big businesses.

 

How it’s doing

For the six months to the end of September saw revenue rise by 26% to £30.8mln from £24.4mln in the same period of last year.

Managed services revenue, which now forms 82% of total revenue (2018: 74%), rose by 39% to £25.1mln from £18.0mln the year before.

Organic year-on-year revenue growth in the period clocked in at 2.5%, driven mainly by information technology and managed connectivity services.

Reported profit before tax decreased to £1.15mln from £1.70mln the previous year, due to the £870,000 increase in amortisation and £394,000 increase in interest charges, with the latter arising from a higher average net debt position as a consequence of the four acquisitions completed in the last 14 months.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA), which excludes one-off acquisition costs, restructuring costs and share-based payments, climbed by 18% to £6.1mln from £5.2mln the previous year while the EBITDA margin eased to 20% from 21%.

EBITA conversion to pre-tax cash from operating activities improved to 90% from 82% in the corresponding period of 2018.

Net senior debt at the end of September stood at £31.5mln, up from £25.1mln the year before.

The interim dividend was increased by 5.1p to 4.9p.

 

Inflexion points

  • In early November, AdEPT was granted “diamond” reseller partner status by US communications group Avaya, one of only eight such partners in the UK
  • An upgrade to the firm’s flagship education security and safeguarding tool, WebScreen, has been positively received with feedback from users in schools being extremely positive
  • In a letter to shareholders in September, the company said the second half of its current year will see all subsidiary companies moving to a single AdEPT brand

 

Interview – CEO Phil Race

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AdEPT Technology reports 'storming first half' as it transitions to managed...

AdEPT Technology Group PLC's (LON:ADT) Phil Race and John Swaite discuss with Proactive London's Andrew Scott their interims to 30 September 2019. The acquisitive information technology services provider saw revenue rise by 26% to £30.8mln in the period from £24.4mln. Managed services...

3 weeks, 6 days ago

2 min read