RNS Number : 6682M
AdEPT Technology Group PLC
23 September 2021
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
23 September 2021
ADEPT TECHNOLOGY GROUP PLC
("AdEPT" or the "Group")
AdEPT, one of the UK's leading independent providers of managed
services for IT, unified communications, connectivity, and voice
solutions, provides the following trading update ahead of its AGM,
which is being held later today.
The Board is pleased to report a positive start to the year,
with current trading in line with its expectations. Organic growth
has delivered improvements in recurring revenues for cloud centric
services both ahead of Q121 and pleasingly, also ahead of Q421, a
trading quarter which saw more normal business activity following
the disruption caused by COVID-19.
Revenues in one-off services are also ahead of Q121 with demand
for technology products returning. We are also seeing an
encouraging trend of repeated business from existing clients for
their one-off purchases. The well documented supply issues caused
by the global chip shortage has the potential to delay the delivery
of some products and associated services, but we are working
closely with our partners to mitigate supply chain delays where
Given the COVID driven focus on working from home during the
first half of 2021 the increased decline in traditional telephony
revenues is as expected and is unlikely to stabilise until
employees return more fully to onsite working. This area now
accounts for only 12% of the Group's total revenues reflecting the
strategy to grow in other products and services to mitigate the
decline in this area.
Continued strong cash generation
Cash generation in Q1FY22 remained strong, with the Group
generating GBP2.5m of operating cash flow, which represents 96%
cash conversion. Strong cash flows and the Group's new banking
facility, signed in March 2021, were employed to fund the
acquisition of Datrix in April 2021. Net cash outflow in Q1 FY22
was GBP7.5m. Following these movements, the net debt at the end of
Q1 (June 2021) stands at GBP32.0m (FY21: GBP25.6m).
Considerable progress has been achieved on the integration of
Datrix, the award-winning supplier of advanced cloud-based
networking, communications, and cyber security solutions business
acquired in April for an initial consideration of GBP9.0m.
Since acquisition, Datrix has been successfully, and ahead of
schedule, migrated onto One AdEPT, the Group's core operating
system. One AdEPT lies at the heart of the Group's growth strategy,
providing high levels of operational visibility and a scalable
platform for cross-selling its growing range of in-demand
capabilities. The rapid integration of Datrix on to the platform
demonstrates the Group's ability to deliver on its strategy to
continuously consolidate this fragmented market.
The Board is pleased to note that Datrix has secured contract
renewals and new business wins since joining the Group and received
positive client feedback about the benefits of being part of a
As an example of AdEPT's ability to deliver on its promises, the
contract with the TUC, reported in the Final Results in July, has
been successfully completed on time and on budget. This engagement
utilised AdEPT Nebula, the Group's hybrid cloud platform, a
solution that proved to be a key differentiator in securing the
project win, enabling AdEPT to provide the TUC with a full IT
solution which addressed all its business continuity objectives.
This project win and subsequent delivery clearly demonstrates the
value of our investment in AdEPT Nebula and the potential new
opportunities it brings to the Group.
In relation to product, AdEPT continues to evolve its Education
Suite, having recently launched a new software product for the
education market, comprising a low-cost synchronising utility,
Nimbus Sync is designed to help schools synchronise their
cloud-based learning platforms with their Management Information
Systems (MIS) without the need to re-key. This is an area that had
previously proved challenging, creating additional work for
administrators already under significant pressure. The software can
synchronise data in minutes and continue to do so in the background
without the need for any intervention.
Launch of ESG
The Group has now completed its review of Environmental, Social
and Governance frameworks and has elected to adopt the UN Global
Compact as a sensible and pragmatic option, allowing AdEPT to
report against the goals relevant to AdEPT and where it can have
the most impact.
As part of this published ESG policy AdEPT is looking to achieve
Carbon Neutral status by 2030.
An initial report has been produced to set out the most relevant
goals and how AdEPT can contribute to these. This has been launched
internally and will be updated regularly. For transparency, this is
also available on the ADEPT investor website.
Outlook and half year results
AdEPT's primary focus remains the delivery of strong organic
growth, harnessing the overall market shift to cloud centric
solutions. In parallel, we will seek opportunities to consolidate
the fragmented ICT market further, through complementary
acquisitions which generate strong levels of recurring revenue and
The Board is pleased to report a positive start to the year with
the Group trading in line with its expectations in the first four
months of the financial year ending 31 March 2022 ("FY22").
AdEPT intends to announce its half year results for the six
months to 30 September 2021 in mid-November 2021.
Our priority for the next 6 months will be to pay down debt and
we will review our dividend policy at year-end.
AdEPT Technology Group Plc
Ian Fishwick, Chairman Tel: 07720 555 050
Phil Race, Chief Executive Tel: 07798 575 338
John Swaite, Finance Director Tel: 01892 550 243
Singer Capital Markets (Nominated
Adviser & Broker)
Shaun Dobson / Rachel Hayes Tel: 020 7496 3000
/ William Goode
Cat Valentine Tel: 07715 769 078
Keeley Clarke Tel: 07967 816 525
This announcement has been released by John Swaite, Finance
Director, on behalf of the Company.
AdEPT is one of the UK's leading independent providers of
managed services for IT, unified communications, connectivity, and
voice solutions. AdEPT's tailored services are used by thousands of
customers across the UK and are brought together through the
strategic relationships with tier-1 suppliers such as Openreach,
Vodafone, Virgin Media, Avaya, Microsoft, Dell, and Apple.
AdEPT is listed on the London Stock Exchange (AIM: ADT). For
further information please visit: www.adept.co.uk
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact firstname.lastname@example.org or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
(END) Dow Jones Newswires
September 23, 2021 01:59 ET (05:59 GMT)
Adept Technology (LSE:ADT)
Historical Stock Chart
From Dec 2021 to Jan 2022
Adept Technology (LSE:ADT)
Historical Stock Chart
From Jan 2021 to Jan 2022