WH Ireland Analayst, Brendan D’Souza on AdEPT Telecom LON:ADT “AdEPT has announced it has acquired Comms Ltd. for an initial cash consideration of £3.5m. The initial consideration implies great value at 0.9x Comms 2016 Revenue
(March YE) and 4.4x EBIT versus the small cap telecom peer group average of 2.2x EV/Sales and 15.9x EV/EBIT respectively. As with AdEPT’s previous acquisitions,
Comms is expected to be accretive from year one, resulting in our FY17E revenue increasing by 11% to £33m and FY18E by 13% to £33.3m. Our adj. diluted EPS now
stands higher by 16% in both FY17E at 22.2p and FY18E at 21.7p. Our revised Target Price stands increased at 355p/share (+16% vs. 305p prior)”