AdEPT Technology Group PLC (AIM:ADT) has restored the dividend after a year of growth in which revenues and earnings both grew robustly.
And, providing an upbeat message for investors, the IT services specialist said the strong trading momentum witnessed in the final three months up to March 31 2022 had continued into the new financial year.
Looking ahead, the company said the focus for the current 12 months was on organic growth, which, based on the company’s ability to generate free cash, should allow AdEPT to more than chip away at its senior debt, which totalled £29.4mln at the period-end.
The results for the year showed the top line grew by 18% to £68.1mln, buoyed by the acquisition of Datrix, bought last April for an initial £9mln.
EBITDA advanced by 21% to £11.9mln, while shareholders will receive a 1p a share payout.
Taking a closer look at the financials, recurring revenues remained strong at just under 74% of the total, while income from its cloud-based operations was up 18% at £29.5mln.
Eye-catching was just how little capital investment the business requires at just 2% of turnover.
The cash generation of the business was strong at £8.1mln, up from £7.4mln, while the conversion of reported earnings to operating cash flow before tax was 108%.
Chief executive Phil Race was upbeat on the prospects of the business: "The technology market is vibrant and growing, underpinned by the evolution of our working patterns, during and after the pandemic, and the need for business-critical cyber security across all digital services.
“The new financial year has started well, with the group building on the momentum gained in Q4.
“This, combined with our comprehensive portfolio of capabilities, our extensive and strong industry partnership and numerous flagship references from across the public and private sectors, gives us confidence in prospects for the group both in the year ahead and beyond."