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AdEPT says digital transformation trends underpin future prospects

Digital transformation, a reliance on unified communication, the move to the cloud and a greater dependency on connectivity, all provide strong tailwinds for the AdEPT business

AdEPT Technology Group PLC -

AdEPT Technology Group PLC (LON:ADT) weathered tough trading conditions pretty well in the first half of its financial year.

The provider of information technology and telecommunications services played its part during the lockdown in helping schools switch to home education and doctors’ surgeries hold virtual surgeries, while in the private sector it has helped numerous businesses make the necessary transition away from a reliance on office work.

Nevertheless, the half-year to the end of September also some customers cut back on the services they take from AdEPT as a result of uncertainty caused by the coronavirus (COVD-19) pandemic.

As a result, total revenue eased by 7.6% to £28.5mln from £30.8mln the year before but the proportion of recurring revenue rose to 78% of total revenue from 75% in the first half of last year.

Underlying earnings (EBITDA) slipped to £5.2mln from £6.1mln the previous year and the underlying EBITDA margin drifted to 18.4% from 19.8%.

The group is not proposing a dividend at this time owing to continued uncertainty in the economy and neither is it providing full-year (FY21) guidance.

"The AdEPT business has proved incredibly resilient in the period despite the headwinds created by the unique challenge of the Covid-19 pandemic. Our revenue balance between private (55% of total revenue) and public sector customers (45% of total revenue), and our continued laser focus on recurring revenue has underpinned the performance of AdEPT throughout the first half of FY21,” said Ian Fishwick, the chairman of AdEPT.

“As we assist clients in their digital ambitions, AdEPT itself continues its own digital transformation on a journey to place the entire business on a common operating platform, a programme referred to as Project Fusion. Project Fusion continues to make excellent progress with over 60% of the workforce now on the platform. As a result, we are making huge strides against our mission to become One AdEPT.

“Going forward we will focus on adding further value by: a) helping customers on a digital journey with AdEPT Consulting, b) providing an easy to consume cloud platform for applications and c) strengthening our successful AdEPT Nebula offering,” Fishwick said.

Quick facts: AdEPT Technology Group PLC

Price: 227 GBX

LSE:ADT
Market: LSE
Market Cap: £56.82 m
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AdEPT Technology Group PLC's (LON:ADT) Phil Race and John Swaite discuss with Proactive London's Katie Pilbeam their interims to 30 September 2020. Swaite discusses the financials, with total revenue eased by 7.6% to £28.5mln from £30.8mln the year before but the proportion of recurring...

on 17/11/20

2 min read