TIDMADF
RNS Number : 8391M
Facilities by ADF plc
26 May 2022
26 May 2022
Facilities by ADF plc
("Facilities by ADF", the "Company" or the "Group")
Final results for the year ended 31 December 2021
Facilities by ADF, the leading provider of premium serviced
production facilities to the UK film and high-end television
industry, is pleased to announce its maiden unaudited final results
for the year ended 31 December 2021.
Financial highlights
31 Dec 2021 GBPm 31 Dec 2020 GBPm 31 Dec 2019 GBPm
Group revenue 27.8 8.0 15.9
Adjusted EBITDA 7.7 0.8 3.2
Adjusted EBITDA % 28% 10% 20%
Operational highlights
-- Significant revenue growth across Main Packages sales and
Additional Sales following the pandemic.
-- Supported 39 productions, including Doctor Strange, Essex
Serpent, Slow Horses, Sanditon, Disney's Willow, The Crown, Peaky
Blinders, The Outlaws and have a strong pipeline of films and TV
shows for the coming year.
-- Secured a number of contracts for future productions through existing customers.
-- Experienced increased demand in 2021 for additional content
from global streaming brands, firmly establishing ourselves in the
UK production landscape.
-- Begun construction of new operational base at Longcross,
Surrey, which is expected to be fully operational by Q4 2022.
Outlook
-- Market dynamics continue to be strong with increasing demand
for film and high-end television in the UK. This is further
supported by unprecedented levels of investment in UK Studio space
and content, which bodes well for the Company's growth
ambitions.
-- The Company raised GBP15m of gross proceeds on admission to
trading on AIM and has already started to invest by expanding
orders for additional vehicles and trailers to meet demand.
-- Recent contract wins with new and existing customers have
strengthened ADF's expanding network of contacts.
-- The Group continues to have strong order visibility in the
new financial year with the 2022 order book almost fully
booked.
Commenting on the results, Marsden Proctor, CEO, said:
"We are delighted to report on a strong year of trading,
delivered in the lead up to our IPO on AIM, in which we experienced
increasing demand for our offering. Our successful IPO, completed
in January 2022, has provided us with the means to further
strengthen the Company's financial position and execute on our
growth strategy.
"The strength of our network of contacts, depth of our customer
base and supportive market dynamics, provides us with confidence in
the long-term opportunities for the business; positioning us well
to capitalise on the market opportunities ahead."
This announcement contains inside information for the purposes
of the UK Market Abuse Regulation and the Directors of the Company
take responsibility for this announcement.
For further enquiries:
Facilities by ADF plc via Alma PR
Marsden Proctor, Chief Executive Officer
Neil Evans, Chief Financial Officer
John Richards, Chairman
Cenkos (Nominated Adviser and Broker) Tel: +44 (0)20 7397
Ben Jeynes / Max Gould / George Lawson - 8900
Corporate Finance
Alex Pollen - Sales
Alma PR (Financial PR) Tel: +44 (0)20 3405
Josh Royston 0205
Hannah Campbell facilitiesbyadf@almapr.co.uk
Ella Denton
OVERVIEW OF FACILITIES BY ADF
ADF's production fleet is made up of premium mobile make-up,
costume and artiste trailers, production offices, mobile bathrooms
(known as honey wagons), diners, school rooms and technical
vehicles. The Group provides these production facilities and
additional services after a planning process with the customer held
well in advance of filming. In servicing productions, ADF staff are
available on site and each production is allocated an account
manager who acts as a single lead point of contact during
filming.
The Group serves customers in an industry that has experienced
significant growth in recent years, with additional demand driven
by a material rise in the consumption of film and HETV content via
streaming platforms such as Netflix, Disney and Amazon Prime. The
UK film and TV industry has directly benefited during this growth
due to the quality of its production facilities and studios, highly
skilled domestic workforce, geography, accessibility to Europe,
English language environment and strong governmental support. Major
US streaming companies have now set up permanent bases in the UK,
with the UK now Netflix's third largest operation after the USA and
Canada.
Chairman's statement
Having begun our first year as a publicly listed company, I am
delighted to report a successful outcome for 2021 and a robust
pipeline for 2022. Completing an IPO is a significant feat but to
do so against a challenging macro-economic backdrop, and to deliver
an improved share price since IPO in January, is a clear testament
to the quality of the business. Full year revenues of GBP27.8m and
adjusted EBITDA of GBP7.7m demonstrate a remarkable turnaround from
the impact of the Covid-19 pandemic in 2020, and equally remarkable
progress from the pre-pandemic levels of 2019.
Much of this success is driven by our expanding fleet of
vehicles, unrivalled long-standing customer relationships, the
expertise and committed teams within the business, and a robust and
growing market.
Successful IPO
At the time of our listing in January 2022, we emphasised our
intention to grow the business by both organic and acquisitive
routes, and to utilise our GBP15m of gross proceeds accordingly. I
am pleased to report that this has already begun with the purchase
of new capital equipment to meet the growing demand we are
experiencing, and our acquisition pipeline looks very encouraging.
We approach acquisitions with a robust set of criteria in that we
look to work within demanding multiples, will have an element of
the consideration both deferred and contingent, will in most
circumstances retain the management and will keep the brand name
unchanged as it serves its customer base. Whilst opportunities were
limited pre-IPO, the IPO has provided significant growth capital
and raised the Company's profile, and it is now a key part of the
Group's growth strategy.
At IPO, we were also able to demonstrate a substantially
sold-out 2022 order book and a significant order book for 2023.
This continues to progress and means our new trailers, which
increase our capacity, can be booked out in advance. Around 100
additional vehicles will become part of the ADF fleet in 2022,
bringing the total number of vehicles to 600, with similar volumes
ordered for 2023.
Market opportunity
UK market growth continues to be buoyed by a highly skilled
workforce, strong Government support, a long history of film and TV
production, favourable tax treatment and the unprecedent levels of
investment in UK studio space and content, which bodes well for the
Group's growth ambitions. High-end TV has been in the vanguard of
this growth and ADF has been and continues to be well positioned to
capitalise on this opportunity. Apple at Aylesbury, Disney at
Pinewood, Netflix at Shepperton and Longcross, and Sky at Elstree,
along with many others, adds huge additional capacity to UK film
and high-end television production capability.
At our new base at Longcross in Surrey, we are perfectly located
to serve all of those sites and, whilst work has already begun, we
expect to be fully operational from there by the start of Q4
2022.
People
In January 2022, we were pleased to announce the appointment of
Kathryn James and Vin Wijeratne as independent Non-Executive
Directors. Kathryn previously served as Managing Director of the
National Exhibition Centre and as Managing Director of Luton
Airport. Vin has served as CFO at the Royal Mint and as CFO of Zip
World. On 9 May 2022, we appointed Alexandra Innes as an
independent Non-Executive Director. Following a career in banking,
Alexandra is currently a Non-Executive Director of Securities Trust
of Scotland PLC, a Non-Executive Committee Member of the Bank of
England and a Member of both the Group Executive Board and the
Technology Investment Board at Knight Frank LLP. Through their
experience and expertise, I am confident Kathryn, Vin and Alexandra
will be valuable additions to our Board as we drive the business
forward in its next phase of growth.
On behalf of the Board, I would like to take this opportunity to
thank all members of staff for their dedication and commitment to
making Facilities by ADF what it is today, and to our new
shareholders for their support which has enabled us to create the
right working environment for ADF to succeed as a listed
business.
ESG
Facilities by ADF is committed to activities that benefit the
environment and society, underpinned by good governance. As a
Board, we are proud to have been the first facilities provider in
Europe that is approved by Albert, the authority on environmental
sustainability for the film and television industry, which is a
clear endorsement of the Group's positive ESG strategy. Being
approved by Albert is becoming ever more important as studios
(including the recently opened Sky Studios Elstree), will only
allow approved vehicles on site. We now also have solar panels
installed on our new fleet vehicles, which are all Euro 6 compliant
and use biofuel where possible.
As a Board, we are dedicated to maintaining our strong corporate
governance framework; following our IPO, we have chosen to adopt
the QCA Corporate Governance Code, which will help to inform the
evolution of our governance approach in future. The recent
appointments we have made to the Board are a clear demonstration of
this commitment and we will continue to ensure this remains as we
grow as a listed business.
Outlook
We have made significant progress in our first six months as a
listed business which reflects the hard work and dedication of our
staff across the Group. With an excellent customer base and a
supportive market backdrop, I am confident this positive momentum
will persist as we continue to deliver our growth strategy in the
year ahead.
John Richards
Chairman of the Board
CEO review
Overview
I am delighted to present Facilities by ADF's results for the
year ended 31 December 2021. It has been a year of solid progress
across the Group and a great start to life as a listed business on
AIM. The increased demand for our products from our extensive
customer base throughout the period, alongside strong market
dynamics, have enabled us to achieve revenues for FY 2021 of
c.GBP27.8 million and adjusted EBITDA of GBP7.7 million. This is
ahead of market expectations at the time of IPO. Following
strategic planning, the Group's IPO in January 2022 was a real
success, and we are very encouraged by the welcoming reception we
have received from our key stakeholders. The Group raised GBP15
million of growth funds on admission to AIM and we are already
deploying these funds as we execute on our IPO growth strategy.
Given the continued positive momentum across the Group, and the
strength of our growth strategy and business model, I am confident
this progress will continue in the current and upcoming financial
year.
Financial performance
The strong financial performance in the year reflects the bounce
back from the impact of the Covid-19 pandemic in 2020 with the
various national lockdowns. In the case of ADF, that meant the
complete closure of the business for four months from March to the
end of July in 2020. Following a phased return to filming, the TV
& film industry has not looked back, with 2021 recording the
highest ever level of activity and spend. Consequently, ADF was
operating at its capacity limit for most of 2021, which is
reflected in the Group's impressive financial results.
Market opportunity
The Group serves customers in an industry that has experienced
significant growth and investment in recent years, with additional
demand driven by a material rise in the consumption of film and
high-end TV ("HETV") content via global streaming platforms such as
Apple TV+, HBO Max, Netflix, Disney +, Sky TV and Amazon Prime. The
UK film and TV industry has directly benefited during this growth
due to the quality of its production facilities and studios, a
highly skilled domestic workforce, geography, accessibility to
Europe, English language environment and strong governmental
support. Major US streaming companies have now set up permanent
bases in the UK, with the UK now being Netflix's third largest
operation after the USA and Canada. Throughout the year there has
also been unprecedented levels of investment in UK studio space and
content, which bodes extremely well for our growth ambitions.
Shinfield Studios in Reading, a state-of-the-art film and
television production complex on over 65 acres of land at the
Thames Valley Science Park in Shinfield, Berkshire, England has now
been granted full planning permission for 18 sound stages with
completion by the middle of 2024.
Meanwhile, Apple TV+, are interested in an Enfield site, to add
to its studio space in Aylesbury. Hertfordshire is also
increasingly becoming Europe's largest TV and film production hub,
comprising three studio complexes. These include a GBP700 million
investment by Sunset Studios, the makers of Zoolander, at
Broxbourne; a 93-acre site at Hertswood; and Sky's 28-acre
development at Elstree.
Industry Performance
In terms of the overall performance of film and TV production in
the UK, the British Film Institute ("BFI") recently reported on the
year ended 31 December 2021 the following facts:
-- The combined total UK spend on film and high-end (HETV)
productions for the full year 2021 was GBP5.64 billion. This is the
highest since records began and GBP1.27 billion higher than the
previous peak reported in 2019. The total number of film and HETV
productions for 2021 was 420, 19% higher than the 353 productions
which started principal photography during 2020.
-- 209 films began principal photography in 2021; with a total
UK production spend of GBP1.55 billion. This is 3% higher than the
GBP1.5 billion spent across 350 films in 2020. Inward investment
productions accounted for 82% of the total UK spend (GBP1.28
billion). Spend on UK domestic features was GBP221 million or 14%
of the 2021 spend, compared with GBP158m in 2020, 10% of the total
UK spend on film production. Coproduction accounted for GBP58
million, or 4% of the UK spend.
-- There were 211 high-end television productions filming in
2021. Total HETV production spend for 2021 was GBP4.09 billion, by
a large margin this is highest reported spend, nearly double the
previous high of GBP2.21 billion in 2019. Of the total number of
productions, 94 or 45% were domestic, generating a total spend of
GBP648 million (16% of the total UK spend). Total inward investment
and co-production spend on HETV was GBP3.44 billion (84% of the
total spend) across 117 productions. All of these figures are the
highest, by a large margin, since the HETV tax relief was
introduced in 2013.
This extremely encouraging market backdrop, alongside our strong
network of contacts and growing customer base, bodes well for
sustainable growth opportunities for ADF.
Competitive strength
In order to deliver large scale productions and compete at the
top end of the production facilities market, the quality of a
supplier's fleet needs to be incredibly high. ADF prides itself
upon the strength of its fleet and customer service, which has led
to ADF having positive direct relationships with some of the
world's largest traditional and on-demand production companies, and
positions us well to capture a growing proportion of the expanding
market. ADF has won several contracts for future productions
through existing customers and being able to retain these customers
is critical for the success of a business like ADF. Production
companies are unlikely to change provider once they know the
facilities and service levels meet their requirements, given the
bespoke set of requirements for each production. The length of
planning time has increased in recent years due to the rise in both
demand for content and scale of productions. As a result, ADF is
receiving some enquiries between 12 and 18 months before a
production is filmed, with the average lead time of seven months,
and its orderbook is mostly filled for 2022. This level of revenue
visibility is rare in any business and allows the Group to
accurately plan.
The requirement for a large amount of capital expenditure on
specialised equipment and a high-quality network of contacts are
the two main barriers to entry in this industry. The Board believe
it would take somewhere between three to five years and require
approximately GBP40 million of capital expenditure to replace ADF's
current fleet, and a new entrant into the market without an
industry contact base would likely struggle to generate sufficient
leads.
We also tracked our Net Promotor Score (NPS) throughout the
year, and we are continuing to perform extremely well. We received
an overall NPS score of 88, which is a first class result in this
internationally recognised customer service measurement and
reflects the expertise and knowledge of our staff that enables us
to be a market leader.
Throughout the year we supported a range of productions,
including Doctor Strange, Essex Serpent, Slow Horses, Sanditon,
Willow, The Crown, Peaky Blinders, The Outlaws and have a strong
pipeline of films and TV shows for the coming year. This visibility
provides us with the confidence in our ability to deliver on our
growth strategy in the new financial year and beyond.
Delivering against growth strategy
The Group has ambitions to grow organically through further
investment into revenue-generating fleet equipment; and
inorganically via opportunities to grow through acquisitions.
The supportive market dynamics mentioned above have led to a
significant increase in demand for our services, with ADF's fleet
capacity already almost fully booked for the 2022 calendar year. We
have had a total of 197 new vehicles ordered for 2022/2023, with 76
already delivered.
Our total current fleet size is 514. By the end of 2022 we
expect it to reach 600 and 700 by the end of 2023. The Group has
committed to new fleet capital expenditure orders of approximately
GBP7.2 million and GBP6.6 million for 2022 and 2023, respectively.
Due to the strained worldwide supply chains, we have experienced
increased lead times on delivery of our new fleet from ADF's key
suppliers; General Coach Canada, who supply the Artists Trailers
and Production Offices; and from DAF, who supply our Technical
Vehicles, Tractor Units & Generators. To date in 2022, any
delays in deliveries of new equipment has not had a major effect on
the business.
Construction of our new Operational Base at Longcross in Surrey
is well under way. It is a five-acre facility compared to our
current 1.4 acres at Borden and we expect to be operational from
there by the start of Q4 2022.
ESG
As a Group, we are conscious of our responsibility as a
corporate citizen and are focused on achieving a strong ESG
strategy. ADF is recognised as the first Albert approved facilities
provider to the film and television industry in Europe and our
progress against this accreditation continued to move forward
throughout the year. We now have solar panels installed on 175 of
our new vehicles and the use of low energy lighting is universal.
We also remain focused on ensuring our vehicles are clean and meet
the Euro 6 emission standards. All vehicles are Ultra Low Emission
Zone compliant and use biofuel where possible. The health, safety
and wellbeing of our employees and wider stakeholders is a key part
of the company's strategy and we have engaged the consultants
"Safety Forward" to assist us in improving further. We are
constantly working to ensure we carry out regular health and safety
inspections and audit reporting to ensure compliance. The Board
also recognises the value and importance of high standards of
corporate governance and has since IPO observed the requirements of
the QCA Corporate Governance Code.
People
Our employees are ADF's most important asset and are key to the
Group's long-term success. The achievements throughout the past
year are a testament to the commitment and expertise of our staff.
To strengthen our senior leadership team this year we have made
several important appointments. In January 2022 we appointed Andrea
Browning as the Head of HR and, to manage our expanding fleet of
vehicles and trailers, Rhys Thomas as Head of Fleet. We have also
secured the services of Ross McDiarmid as Deputy Chief Financial
Officer as well as Janis Arents as IT Manager.
Outlook
I am pleased with the start to 2022 and life as a public company
on AIM. As demonstrated this year, with the 2022 order book now
almost fully booked, our business model provides a strong platform
for sustainable growth. Going forward, the underlying market
drivers provide us with confidence that the demand for our services
will continue to expand significantly. This, coupled with our
extensive network of contacts and sector expertise, positions us
well to capitalise on the market opportunity ahead.
Marsden Proctor
Chief Executive Officer
Chief Financial Officer's Review
The financial results for the year reflect the huge bounce back
from the impact of restrictions in 2020 arising from the Covid-19
pandemic, with high demand in 2021 for additional content from the
global streaming brands now firmly established in the UK production
landscape.
Revenue
ADF's revenue increased by 245% in 2021 compared to 2020,
however there were prolonged periods of closure in 2020 as a result
of the first national lockdown in the UK. ADF closed down from the
end of March 2020 until the end of July 2020, with all staff on
furlough, other than a small team of 5 to administer the business
during the closure. From July 2020 there was a controlled return to
production in the film and TV industry, which was among some of the
first sectors to be allowed back to work after the national
lockdown. Thus 2020 results are not comparable to 2021 and hence
reference is made in the narrative in the report to 2019 as the
last full 'normal' year of operation.
Inc. vs Inc. vs
Turnover GBPM's 2021 2020 2021 2019 2021
----------------- -------- ------- -------- -------- --------
Main packages GBP15.6 GBP5.3 196% GBP9.1 70%
Additional
sales GBP11.8 GBP2.7 344% GBP6.5 82%
Other income GBP0.4 GBP0.1 236% GBP0.3 39%
Total GBP27.8 GBP8.0 245% GBP15.9 74%
----------------- -------- ------- -------- -------- --------
Uplift on main
packages % 76% 50% 50% 71% 7%
----------------- -------- ------- -------- -------- --------
The table above shows the revenue for the year split out between
the 2 main headings, being Main Packages and Additional Sales, plus
other miscellaneous sales.
Main Package sales
Main packages are agreed with ADF's clients, in most cases
several months in advance, for the hire of specific equipment over
a set timeframe. Each type of equipment has a set daily hire rate.
The cost of ADF staff required to be onsite to manage and service
the equipment is also calculated by reference to a set daily hire
rate.
Additional sales
As ADF's trailers can be booked six or more months in advance,
client requirements invariably change in the run up to filming. Any
additional equipment and staff required during the filming period,
and the labour cost of all equipment moves are then charged out
weekly during the filming period. In 2021, the value of additional
sales was 76% of the initial package revenue compared to 50% during
the Covid-interrupted 2020 (and 71% in 2019). Specifically,
additional sales include:
-- Labour recharges - this is the largest component of
additional revenue (typically more than half) and is principally
payments for drivers to move trailers & equipment around the
various locations on each production.
-- Additional trailer hire - incremental vehicles required during the project.
-- Fuel recharges - when a customer requests ADF's vehicles be
moved around, ADF will recharge for the fuel used (with a c10%
admin fee). ADF also sell fuel cards that the clients' staff can
use as they move about between sets. Through an arrangement with
Shell, ADF also get a rebate (of c3%) on fuel purchased.
-- Sundry recharges - small in size, and includes items such as
consumable products, hand sanitisers, toiletries etc.
There was, as in previous years, an element of revenue
seasonality, with a build up to the key summer months when outdoor
filming on location is more reliable with better weather, and a
tail off in December when the TV & film industry generally has
a 3-4-week hiatus.
Revenue Mix
ADF worked on 39 productions in 2021 with an average revenue
value of GBP682K. This was a significant increase on the
pre-Pandemic average value, which was GBP338K in 2019. This is
partly a reflection of film and higher-end TV productions getting
longer and more cost intensive.
Production value No.
------------------- ----
GBP0 - GBP500K 19
GBP500K - GBP1.0M 13
GBP1.0M - GBP1.5M 4
GBP1.5M - GBP2.0M 1
GBP2.0M - GBP2.5M 1
GBP2.5M - GBP3.0M 1
39
------------------- ----
Direct Costs & Gross Profit
Direct costs comprise a number of significant elements:
-- Payroll for ADF staff based at production sites (studios and
on location, managing and servicing the equipment), together with
ADF & agency HGV drivers to move equipment between locations,
and ADF staff employed in our workshops, bodyshop and trailer
manufacturing plant. ADF's direct payroll cost in 2021 was 28% of
revenue, compared to 61% in 2020, when the business was closed for
4 months during the national lockdown (and 35% in 2019, the last
full comparable year);
-- Repair & running costs for motor vehicles & trailers
- some economies were achieved during 2021 as a result of the
continued investment in new, better-quality equipment;
-- Fuel - further economies were achieved with the increasing
scale of individual productions, balanced by fluctuating fuel
prices.
The overall gross margin for 2021 was 39% compared to 7% during
2020 (and 32% in 2019).
Administrative Expenses
Administrative costs comprise payroll for management and
office-based staff, rent & facility related costs for the 3
mains sites that the company operates from, depreciation &
amortisation, and various other overheads. Excluding depreciation
and amortisation, administrative expenses were 11.3% of revenue
compared to 20.3% in 2020 (10.8% in 2019).
Non- Recurring Expenses
Non-recurring expenses comprise professional adviser costs and
other one-off costs relating to the listing of Facilities by ADF
Plc on the London Stock Exchange AIM market on 5(th) January
2022.
Share Based Payments
These relate to certain options granted to 3 employees. The cost
was calculated under the Black Scholes method.
Operating Profit
Operating profit for the year was GBP3.1 million compared to an
operating loss of GBP69,000 in 2020 (GBP2.4 million in 2019).
Adjusted EBITDA
Adjusted EBITDA is the adjusted profit before tax, prior to the
addition of finance income and deduction of depreciation,
amortisation, and finance expenses.
The table below shows the bridge between profit before tax (2020
loss before tax) to Adjusted EBITDA (GBP000's).
Adjusted EBITDA 2021 2020
----------------------------- --------- ---------
Profit/(loss) before
tax GBP2,794 (GBP479)
Add back:
Finance expenses GBP358 GBP411
Depreciation & amortisation GBP1,922 GBP895
Non-recurring expenses GBP1,322 GBP0
Share based payment
expense GBP1,332 GBP0
Adjusted EBITDA GBP7,728 GBP827
----------------------------- --------- ---------
Adjusted EBITDA % 27.8% 10.3%
----------------------------- --------- ---------
Cash Flow & Net Debt
Operating cash flows before movements in working capital
increased from a deficit of GBP(479,000) in 2020 to a surplus of
GBP2.8 million in 2021. Cash generated from operations increased
from GBP1.8 million in 2020 to GBP8.6 million in 2021.
Trade & other receivables increased by GBP1.1 million, and
trade and other payables increased by GBP2.9 million, predominantly
due to costs related to the IPO on 5(th) January 2022.
At 31 December 2021, net debt (borrowings less cash) was GBP7.6
million which compares to GBP9.1 million at the prior year end.
This is after non-financed investment in additional equipment of
GBP780,000 and dividends of GBP913,000 (2020: GBP371,000).
Cash Flow & Net Debt 2021 2020
------------------------ ---------- ----------
Cash Flow:
Cash balances B/F GBP1,254 GBP1,330
Movement GBP3,733 (GBP76)
Cash balances C/F GBP4,987 GBP1,254
------------------------ ---------- ----------
Debt:
Leases & Hire Purchase GBP12,265 GBP9,373
Bank loans GBP342 GBP946
Total GBP12,607 GBP10,319
------------------------ ---------- ----------
Net Debt GBP7,620 GBP9,065
------------------------ ---------- ----------
Subsequent Events
As noted elsewhere in the Annual Report, Facilities by ADF Plc
listed on the London Stock Exchange AIM market on 5(th) January
2022.
Neil Evans FCA
Chief Financial Officer
Consolidated income statement
Profit & Loss - Y/E Dec
(GBPm) FY19A FY20A FY21A
Revenue GBP15.9 GBP8.0 GBP27.8
Growth 26% -49% 245%
Cost of sales GBP(10.9) GBP(7.5) GBP(16.9)
----------------------------- ---------- --------- ----------
Gross profit GBP5.1 GBP0.6 GBP10.9
Gross margin 32% 7% 39%
Admin expenses GBP(1.9) GBP(1.7) GBP(3.2)
Other income GBP0.0 GBP1.9 GBP0.0
----------------------------- ---------- --------- ----------
Adj EBITDA GBP3.2 GBP0.8 GBP7.7
Adj EBITDA margin 20% 10% 28%
Non-recurring expenses GBP0.0 GBP0.0 GBP(1.3)
Share based payments GBP0.0 GBP0.0 GBP(1.3)
------------------------------ ---------- --------- ----------
EBITDA GBP3.2 GBP0.8 GBP5.1
Depreciation & amortisation GBP(0.8) GBP(0.9) GBP(1.9)
EBIT GBP2.4 GBP(0.1) GBP3.2
Net interest expense GBP(0.2) GBP(0.4) GBP(0.4)
PBT GBP2.2 GBP(0.5) GBP2.8
Tax charge GBP(0.5) GBP0.1 GBP(1.5)
------------------------------ ---------- --------- ----------
PAT GBP1.7 GBP(0.4) GBP1.3
------------------------------ ---------- --------- ----------
Consolidated cashflow statement
Cash Flow - Y/E Dec (GBPm) FY19A FY20A FY21A
PBT GBP2.2 GBP(0.5) GBP2.8
Depreciation & amortisation GBP0.9 GBP0.9 GBP1.9
Working capital GBP0.1 GBP0.6 GBP1.8
Share based payments GBP0.0 GBP0.0 GBP1.3
Other items GBP0.6 GBP0.4 GBP0.1
Net Interest Expense GBP0.3 GBP0.4 GBP0.4
Corporation Tax (paid) / GBP(0.3) GBP0.0 GBP0.4
received
--------------------------------- --------- --------- ---------
Net Cash Flow from Operating GBP3.8 GBP1.8 GBP8.6
Activities
--------------------------------- --------- --------- ---------
Purchase of property, plant GBP(0.2) GBP(0.1) GBP(0.8)
and equipment
Purchase of right of use GBP(6.9) GBP(3.5) GBP(5.9)
assets
--------------------------------- --------- --------- ---------
Net Cash Flow from Investment GBP(7.1) GBP(3.6) GBP(6.7)
Activities
--------------------------------- --------- --------- ---------
Equity issuance GBP0.0 GBP0.0 GBP0.8
Net Debt Borrowings / Repayments GBP6.7 GBP3.5 GBP5.5
Lease Payments GBP(1.9) GBP(1.3) GBP(3.1)
Dividends GBP(0.5) GBP(0.4) GBP(0.9)
Other items GBP0.0 GBP0.0 GBP(0.5)
--------------------------------- --------- --------- ---------
Net Cash Flow from Financing GBP4.3 GBP1.8 GBP1.8
Activities
--------------------------------- --------- --------- ---------
Net Increase / (Decrease) GBP1.0 GBP0.0 GBP3.7
in Cash
Cash at Beginning of Year GBP0.3 GBP1.3 GBP1.3
--------------------------------- --------- --------- ---------
Cash at End of year GBP1.3 GBP1.3 GBP5.0
--------------------------------- --------- --------- ---------
Consolidated balance sheet
Balance Sheet - Y/E Dec FY19A FY20A
(GBPm) FY21A
Property, plant and equipment GBP3.2 GBP3.4 GBP4.1
Right-of-use assets GBP8.8 GBP11.1 GBP15.1
Goodwill & other intangible GBP0.0 GBP0.0 GBP0.0
assets
------------------------------ -------- -------- --------
Total Non-Current Assets GBP12.0 GBP14.5 GBP19.2
Cash GBP1.3 GBP1.3 GBP5.0
Trade & other receivables GBP0.8 GBP1.0 GBP1.7
Total Current Assets GBP2.1 GBP2.3 GBP6.7
Short term debt GBP0.0 GBP0.5 GBP0.1
Lease liabilities GBP0.8 GBP2.1 GBP2.7
Trade & other payables GBP1.9 GBP2.3 GBP5.1
------------------------------ -------- -------- --------
Total Current Liabilities GBP2.7 GBP4.9 GBP7.9
Long term debt GBP0.0 GBP0.4 GBP0.2
Lease liabilities GBP6.7 GBP7.3 GBP9.6
Deferred tax GBP0.9 GBP1.2 GBP2.7
Other long term liabilities GBP0.0 GBP0.1 GBP0.0
------------------------------ -------- -------- --------
Total Non-Current Liabilities GBP7.6 GBP9.0 GBP12.6
------------------------------ -------- -------- --------
Net Assets GBP3.8 GBP2.9 GBP5.4
------------------------------ -------- -------- --------
NOTES TO THE FINANCIAL INFORMATION
1. Accounting Policies
1.1 Basis of preparation
Facilities by ADF Plc (the "Group") is a public company limited
by shares, incorporated, domiciled and registered in England and
Wales in the UK. The registered number is 13761460 and the
registered address is Ground Floor 31 Oldfield Road, Bocam Park,
Pencoed, Bridgend, United Kingdom, CF35 5LJ.
The consolidated financial statements are for the year ended 31
December 2021; the company financial statements are for the period
from incorporation to 31 December 2021. They have been prepared in
accordance with UK-adopted international accountings standards in
conformity with the requirements of the UK Companies Act 2006.
1.2 Going concern
The Group has continued to invest in growth throughout the
financial year, with the Group continuing to trade throughout the
historical financial period in a net asset position . The Directors
are pleased with the progress of trading to date, and in
particular, the progress made relative to the challenges of the
last two years, whereby the film and television industry closed due
to government lockdowns for approximately a third of the FY20
financial year.
The financial statements have been prepared on the going concern
basis which the directors believe to be appropriate for the
following reasons. The directors have prepared cash flow forecasts
for a 12-month period from the date of approval of these financial
statements and such forecasts have indicated that sufficient funds
should be available to enable the Group to continue in operational
existence for the foreseeable future by meeting its liabilities as
they fall due for payment.
The Group has been impacted by the COVID-19 Pandemic to a
limited extent, with the Directors highlighting the Group has been
able to maintain a strong balance sheet and has continued to trade
profitably throughout.
2. Earnings Per Share
The calculation of the basic earnings per share (EPS) is based
on the results attributable to ordinary shareholders divided by the
weighted average number of shares in issue during the year. Diluted
EPS includes the impact of outstanding share options.
For the period ending 31 December 2020 there was a loss for the
year recognised of GBP402,259, as such diluted EPS is identical to
the basic loss per share as the exercise of warrants and options
would be anti-dilutive.
Year ended Year ended
31 December 31 December
2021 2020
GBP GBP
------------- -------------
Profit/ (loss) used in calculating basic
diluted EPS 1,305,886 (402,259)
Weighted average number of shares 40,135,615 39,999,999
Diluted weighted average number of shares 46,686,026 39,999,999
Earnings per share 0.032 (0.010)
------------- -------------
Diluted earnings per share 0.028 (0.010)
------------- -------------
3. Property, plant and equipment
Computer
Plant Hire Motor equipment
and machinery Fleet vehicles GBP'000 Total
GBP'000 GBP'000 GBP'000 GBP'000
--------------- ---------- ---------- ------------ -----------
Cost
At 1 January 2020 114 4,330 357 74 4,875
Additions 8 87 - - 95
Transfers - 632 102 - 734
Disposals - (457) (196) - (653)
At 31 December 2020 122 4,592 263 74 5,051
--------------- ---------- ---------- ------------ -----------
Depreciation
At 1 January 2020 52 1,497 116 45 1,710
Charge for the year 8 42 11 4 65
Transfers - 184 47 231
Disposals - (215) (118) - (333)
--------------- ---------- ---------- ------------ -----------
At 31 December 2020 60 1,508 56 49 1,673
--------------- ---------- ---------- ------------ -----------
Cost
At 1 January 2021 122 4,592 263 74 5,051
Additions 31 486 294 10 821
Transfers - 496 25 - 521
Disposals (27) (5) (90) (73) (195)
At 31 December 2021 -126 5,569 492 11 6,198
--------------- ---------- ---------- ------------ -----------
Depreciation
At 1 January 2021 60 1,508 56 49 1,673
Charge for the year 17 318 27 5 367
Transfers - 127 12 - 139
Disposals (19) (2) (47) (50) (118)
At 31 December 2021 58 1,951 48 4 2,061
--------------- ---------- ---------- ------------ -----------
Net book amount
At 31 December 2020 62 3,084 207 25 3,378
=============== ========== ========== ============ ===========
At 31 December 2021 68 3,618 444 7 4,137
=============== ========== ========== ============ ===========
Depreciation is charged to administrative expenses within the
statement of comprehensive income.
4. Leases
The Group leases a number of assets in the jurisdictions from
which it operates. All lease payments, in-substance, are fixed over
the lease term. Where there are leasehold properties which hold a
variable element to the lease payments made, these are not fixed
and not capitalised as part of the right of use asset. All expected
future cash out flows are reflected within the measurement of the
lease liabilities at each year end.
Nature of leasing activities
As at As at
31 December 2021 31 December 2020
----------------- -----------------
Number of active leases 61 64
================= =================
The Group leases include leasehold properties for commercial and
head office use, motor vehicles and equipment. The leases range in
length from three to ten years and vary in length depending on
lease type. Leasehold properties holding the longest-term length of
up to 10 years, motor leases up to 4 years, hire fleet up to 7
years, vehicles up to 7 years and equipment of up to 5 years. All
leases are held with the Group's subsidiary CAD Services Ltd.
Extension, termination, and break options
The Group sometimes negotiates extension, termination, or break
clauses in its leases. In determining the lease term, management
considers all facts and circumstances that create an economic
incentive to exercise an extension option, or not exercise a
termination option. Extension options (or periods after termination
options) are only included in the lease term if the lease is
reasonably certain to be extended (or not terminated).
On a case-by-case basis, the Group will consider whether the
absence of a break clause would expose the Group to excessive risk.
Typically, factors considered in deciding to negotiate a break
clause include:
- The length of the lease term;
- The economic stability of the environment in which the property is located; and
- Whether the location represents a new area of operations for the Group.
Incremental borrowing rate
The Group has adopted a rate with a range of 3.3% - 4.2% as its
incremental borrowing rate, being the rate that the individual
lessee would have to pay to borrow the funds necessary to obtain an
asset of similar value to the right-of-use asset in a similar
economic environment with similar terms, security and conditions.
This rate is used to reflect the risk premium over the borrowing
cost of the Group measured by reference to the Group's
facilities.
The Group performed a sensitivity analysis where incremental
borrowing rates have been used and identified if the incremental
borrowing rate increased to 5% there would be a decrease in the
carrying amount of the right-of-use asset at 31 December 2021 of
GBP32,393 (2020: GBP39,404); there would be a subsequent decrease
in the lease liability of GBP23,834 (2020: GBP30,418). If the
incremental borrowing rate decreased to 1% there would be an
increase in the carrying amount of the right-of-use asset at 31
December 2021 of GBP96,512 (2020: GBP118,841) and there would be a
consequent increase in the lease liability of GBP67,841 (2020:
GBP89,373).
Sensitivity analysis is not performed on hire purchase leases as
interest is inherent within these lease agreements.
5. Right-of-use assets
Motor Hire Fleet
Leasehold Leasehold and Motor Equipment
Property GBP'000 Vehicles GBP'000 Total
GBP'000 GBP'000 GBP'000
Cost
At 1 January 2020 1,397 30 8,137 12 9,576
Additions - 79 3,547 - 3,626
Transfers - - (734) - (734)
Disposals - - - (4) (4)
At 31 December 2020 1,397 109 10,950 8 12,464
---------- ----------- ----------- ------------ -----------
Depreciation
At 1 January 2020 265 2 491 5 763
Charge for the period 292 25 510 3 830
Transfers - - (231) (231)
Disposals - - - (4) (4)
---------- ----------- ----------- ------------ -----------
At 31 December 2020 557 27 770 4 1,358
Cost
At 1 January 2021 1,397 109 10,950 8 12,464
Additions - 28 5,882 14 -5,924
Transfers - - (519) - (519)
At 31 December 2021 1,397 137 16,313 22 17,869
---------- ----------- ----------- ------------ -----------
Depreciation
At 1 January 2021 557 27 770 4 1,358
Charge for the period 283 30 1,240 2 1,555
Transfers - - (139) - (139)
At 31 December 2021 840 57 1,871 6 2,774
---------- ----------- ----------- ------------ -----------
Net book amount
At 31 December 2020 840 82 10,180 4 11,106
========== =========== =========== ============ ===========
At 31 December 2021 557 80 14,442 16 15,095
========== =========== =========== ============ ===========
6. Lease liabilities
Hire Fleet
Leasehold Motor and Motor
Property Leasehold Vehicles Equipment Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------- ------------ ----------- ------------ -----------
At 1 January 2020 1,137 26 6,361 7 7,531
Additions - 79 2,647 - 2,726
Interest expense 41 3 345 - 389
Lease payments (including
interest) (307) (25) (938) (3) (1,273)
At 31 December 2020 871 83 8,415 4 9,373
========== ============ =========== ============ ===========
At 1 January 2021 871 83 8,415 4 9,373
Additions - 28 5,458 15 5,501
Interest expense 30 3 311 - 344
Lease payments (including
interest) (318) (23) (2,610) (2) (2,953)
At 31 December 2021 583 91 11,574 17 12,265
========== ============ =========== ============ ===========
Reconciliation of minimum lease payments and present value
As at As at
31 December 2021 31 December 2020
GBP'000 GBP'000
----------------- -----------------
Within 1 year 2,996 2,247
Later than 1 year and less than 5 years 9,727 3,999
After 5 years 987 4,170
Total including interest cash flows 13,710 10,416
----------------- -----------------
Less: interest cash flows (1,445) (1,043)
-----------------
Total principal cash flows 12,265 9,373
================= =================
Reconciliation of current and non-current lease liabilities
As at As at
31 December 2021 31 December 2020
GBP'000 GBP'000
----------------- -----------------
Current 2,658 2,100
Non-current 9,607 7,273
----------------- -----------------
Total 12,265 9,373
================= =================
Short term or low value lease expense
As at As at
31 December 2021 31 December 2020
GBP'000 GBP'000
----------------- -----------------
Total short term or low value lease expense 3 21
3 21
================= =================
7. Trade and other receivables
Group As at As at
31 December 2021 31 December 2020
GBP'000 GBP'000
----------------- -----------------
Amounts falling due within one year:
Trade receivables 622 226
Amounts recoverable on contracts 588 144
Hire purchase interest paid 127 -
Prepayments 430 295
1,767 665
================= =================
Company As at
31 December 2021
GBP'000
-----------------
Amounts falling due within one year:
Other receivables 127
Prepayments & accrued income 352
Taxation and social security 156
635
=================
8. Trade and other payables
Group As at As at
31 December 2021 31 December 2020
GBP'000 GBP'000
----------------- -----------------
Amounts falling due within one year:
Trade payables 1,831 447
Other payables 101 333
Taxation and social security 959 928
Accrued expenses 1,722 222
Deferred income 519 328
5,132 2,258
================= =================
Company As at
31 December 2021
GBP'000
-----------------
Amounts falling due within one year:
Amounts due to subsidiaries 952
Accrued expenses 164
1,116
=================
The Directors consider that the carrying value of trade and
other payables approximates to their fair value. Trade payables are
non-interest bearing and are normally settled monthly.
Included in other payables were Director loan accounts with a
balance owed by the Directors as at 31 December 2021: GBP297 (2020:
due to Directors GBP28,668), all amounts were non-interest bearing.
Revenue recognised in the year that has deferred from the previous
year was GBP328,000 (2020: GBP86,393).
9. Borrowings
As at As at
31 December 2021 31 December 2020
GBP'000 GBP'000
----------------- -----------------
Current:
Bank loans 100 527
Other loans - 20
----------------- -----------------
100 547
----------------- -----------------
Non-current
----------------- -----------------
Bank loans 242 342
Other loans - 57
----------------- -----------------
242 399
----------------- -----------------
Total borrowings 342 946
================= =================
A maturity analysis of The Group's borrowings is shown
below:
As at As at
31 December 2021 31 December 2020
GBP'000 GBP'000
----------------- -----------------
Less than 1 year 100 547
Later than 1 year and less than 5 years 242 399
342 946
================= =================
Included in bank loans is a Coronavirus Business Interruption
Loan Scheme (CBILS) held with Barclays. The loan was taken out in
May 2020 and matures four years after this date. The loan incurs
interest of 2.25% above Bank of England base rate with deferred
payment start date as part of the CBILS scheme of 12 months.
Interest on the loan is payable by the UK Government as part of the
business interruption payment under the facility.
Included in bank loans is a trade finance facility held with
Barclays. The agreement is renewed annually and provides 60 day
finance facility. At 31 December 2021 the facility held a limit of
GBP500,000 of which the following amounts had been drawn down and
were outstanding GBPNil (2020: GBP468,887). The facility incurred
interest payable at 31 December 2021 of 2.5% per annum. Included in
other loans is a loan from the CAD Services Pension Scheme, whereby
the trustees, A Dixon and S Haines are also Directors of CAD
Services Ltd . The agreement matured over five years concluding in
May 2021, where the loan was fully repaid, and all obligations
released, thus the amount outstanding at 31 December 2021 was
GBPNil (2020: GBP77,202). The facility incurred interest payable at
12%.
10. Post balance sheet events
On the 5 January 2022 the shares of the Company admitted to the
London Stock Exchange trading on the UK AIM market. Admission and
dealings of the ordinary shares of Facilities by ADF Plc became
effective on this date. As part of the listing, and on this date,
30,000,000 new ordinary shares were placed at a price of 50p.
On 5 January 2022, the Company issued 500,000 and 390,000 new
ordinary share options to M Proctor and N Evans, respectively. The
options hold an exercise price of 1p and will vest after 3 years
subject to specific performance measurement criteria.
On 5 January 2022 Cenkos Securities Plc were granted the
conditional right to subscribe for 1,200,000 new ordinary shares at
the Placing Price at any time during the three-year period from
Admission.
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END
FR BRGDUUDDDGDU
(END) Dow Jones Newswires
May 26, 2022 02:00 ET (06:00 GMT)
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