ADES International Holding PLC (LON:ADES) said it is cautiously optimistic on its prospects for the rest of 2021, as it sees early-stage signs of a recovery and oil prices steadily improve.
Earlier this month, the company agreed to be taken private by a consortium including Saudi Arabia’s sovereign wealth fund in a deal worth US$516mln – at the time, a recommended US$12.50 a share offer represents a 40% premium.
The company, in its results statement Tuesday, said it is positioned for recovery from the lows experienced during the third and fourth quarters of the year.
“Our focus for the coming year remains on actively growing our backlog by pursuing contract renewals and tendering activity while driving further efficiency enhancements through a continued focus on operational efficiency, synergy extraction and digitalisation," said chief executive Dr Mohamed Farouk.
Reviewing last year, it added: “We emerged from 2020 with our top-line largely intact, our EBITDA margin slightly improved due to our successful cost efficiencies and integration efforts, and we maintained a strong financial position with an optimised capital structure.
“More importantly, we proved ourselves a reliable partner for our clients and continued to deliver our high quality and flexible service offering during the most testing times.”
Revenue for 2020 amounted to US$452.1mln compared to US$477.8mln in the prior year meanwhile earnings (adjusted EBITDA) reduced by only 3% to US$185.1mln from US$190.6mln in 2019. Margins reduced to 39.9% in the year, from 40.9%.
Net profit was reported at US$22mln, and the company said that ‘normalised’ net profit would total US$40mln. Operating cashflow was marked at US$181mln for the year, up from US$178mln in 2019, amidst lower capex and acquisition spend.
The company ended the financial year with US$62.5mln of cash on hand and had undrawn bank facilities amounting to US$92mln.
Farouk added: “I am pleased to report that ADES closed 2020 having successfully weathered the storm and demonstrating resilience across all our operations during a year filled with unprecedented challenges.”