Adept shares tumble as sliding profits offset improved revenues
By Iain Gilbert
Date: Tuesday 13 Nov 2018
(Sharecast News) - IT outfit Adept Technology saw revenues and EBITDA improve throughout the first half of its trading year, leaving the board "delighted" by its progress despite also seeing profits retreat.
Revenues rose 9.5% year-on-year to £24.4m, thanks to a 19.2% boost to £18m in revenues from managed services - which now makes up 74% of Adept's total revenues.
However, fixed-line revenues fell 11.5% year-on-year as a result of a switch in the group's organic sales focus to managed services and IT combined with the substitution impact of existing customers transitioning to new technologies.
EBITDA rose 10.7% to £4.7m, while the AIM-listed group's margin inched ahead to 21.2% from the 20.9% recorded a year earlier.
Pre-tax profits slipped 15% to £1.7m as a result of a £400,000 increase in amortisation and a £200,000 jump in interest charges.
Adept also saw debt rise 20.6% to £25.1m.
Earnings per share increased 11.7% to 14.5p and Adept's interim dividend payout jumped 15.3% to 4.9p per share.
Chairman Roger Wilson, said: "The results for the period demonstrate the strength of our capex light model and our organic and acquisitive growth strategy.
"Trading continues to be in line with management's expectations, we continue to be highly cash generative and with a fully supportive investor base and funding partners we remain confident in our strategy to identify earnings-enhancing acquisitions whilst retaining scope for a progressive dividend policy."
As of 1320 GMT, Adept shares had tumbled 8.26% to 362.38p.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN