Commenting upon these results Chairman Roger Wilson said:
“AdEPT has delivered a 25% increase to underlying EBITDA for the year ended 31 March 2018 and the Group continues to deliver consistently high levels of free cash flow generation with more than 80% of reported EBITDA turned into net cash from operating activities after tax. The continued strong cash generation has funded a 13% increase to dividends declared during the year and the Board is confident that continued focus on underlying profitability and cash generation will support a progressive dividend policy.
Free cash flow generated combined with the drawdown of part of the accordion debt facility, put in place in February 2017, and the convertible loan from BGF, was used by the Company to complete the earnings enhancing acquisition of Atomwide Limited during the current period. The acquisition completed during the year combined with organic sales have increased the rate of transition of the Group towards a complete managed service provider, with revenue from managed services accounting for 70% of the total in the year ended 31 March 2018.”
Adept Telecom (LON:ADT), a leading UK independent provider of award-winning managed services for IT, unified communications, connectivity and voice solutions, announced its results for the year ended 31 March 2018.
Financial highlights
· 15th consecutive year of increased underlying EBITDA up 24.8% to £9.8m (2017: £7.8m)
· Revenue increased by 34.8% to £46.4m (2017: £34.4m)
· Gross margin % increased by 5.4% to 47.7% (2017: 42.3%)**
· Underlying EBITDA margin % of 21.0% (2017: 22.7%)
· Profit before tax increased by 32.8% to £4.5m (2017: £3.4m)
· 26.2% increase to adjusted fully diluted earnings per share to 27.69p (2017: 21.94p)
· 12.9% increase to dividends declared to 8.75p (Interim 4.25p, Final 4.50p) (2017: 7.75p)
· Year-end net senior debt* of £17.6m (2017: £15.5m)
· Capital expenditure 0.8% of revenue (2017: 0.3%)
Operational highlights
· Managed services accounted for 69.8% of total revenue (2017: 55.4%)
· Acquisition of entire issued share capital of Atomwide Limited completed in August 2017
* Net senior debt is defined as cash and cash equivalents less short-term and long-term bank borrowings and prepaid bank fees
** Excluding £0.755m Openreach compensation credits