# INTERVIEW: Adept Telecom Plc Dial up another strong year

- Link: https://www.directorstalkinterviews.com/interview-adept-telecom-plc-dial-another-strong-year/412732086
- Published: 2017-07-18T07:20:47+01:00
- Author: Giles Arbor

**Adept Telecom Plc** ([LON:ADT](https://www.directorstalkinterviews.com/company/adept-technology-group-plc/adt.l))
CFO John Swaite talks to DirectorsTalk about its strong trading performance, John
provides a summary of the results, explains how its profit to cash conversion has
been deployed, the strategic fit for the 3 acquisitions made during the period, 
how the enlarged bank facility is being used and what shareholders should look forward
to in future periods.

 

AdEPT Telecom Plc a leading UK independent provider of award-winning unified communications
and IT services, announced yesterday results for the year ended 31 March 2017.

**Financial highlights**

· 14th consecutive year of increased underlying EBITDA up 27.2% to £7.83m (2016:
£6.15m)

· Revenue increased by 19.2% to £34.4m (2016: £28.9m)

· Gross margin % increased by 2.0% to 42.3% (2016: 40.3%)

· Underlying EBITDA margin % increased by 1.4% to 22.7% (2016: 21.3%)

· 20.3% increase to adjusted earnings per share to 23.09p (2016: 19.19p)

· 19.2% increase to dividends declared to 7.75p (Interim 3.75p, Final 4.00p) (2016:
6.50p)

· Year-end net debt* of £15.5m (2016: £6.0m)

· New 5 year £30m revolving credit facility in place with Barclays and RBS

**Operational highlights**

· Managed services accounted for 55.4% of total revenue (2016: 44.3%)

· Acquisition of entire issued share capital of Comms Group UK Limited completed
in May 2016

· Acquisition of entire issued share capital of CAT Communications Limited and Progressive
Communications Limited in November 2016

· Acquisition of entire issued share capital of OurIT Department Limited in February
2017

* Net debt is defined as cash and cash equivalents less short-term and long-term
borrowings and prepaid bank fees

> **Commenting upon these results Chairman Roger Wilson said:** “AdEPT has delivered
> a 27% increase to underlying EBITDA for the year ended 31 March 2017 and the Group
> continues to deliver consistently high levels of free cash flow generation. The
> continued strong cash generation has funded a 19% 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 new larger debt facility put in place
> in February 2017 was used by the Company to complete three earnings enhancing 
> acquisitions during the current period. Following these acquisitions, the Group
> is able to offer its existing and targeted customer base a fully converged unified
> communications and IT service. The acquisitions 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 more than 55% of the total in the year ended 31 March 2017.”

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