Adept Telecom (ADT)

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Adept Telecom ADT Logo

One of the UK’s leading independent providers of managed services for IT, unified communications, connectivity and voice solutions.

4-Oct-2017

AGM Statement Commenting On The 6 Months Ended September 2017 – A little strange this one as it focuses on being able to support a 13.3% increase in the interim Dividend. No mention of beingin-line though (Revenue/Profit wise). So, although the increased Dividend may be taken well, the fact “in-line” (Revenue/Profit) is not mentioned – May not be taken so well.

I quite like this company but am a little suspicious here!

14-Nov-2017 – 305p – £72.3m – PER 11.3

Interim Results For The 6 Months To End September 2017 – Revenue up by 36% to £22.6m (£16.5m last time), adjusted PBT up by 29% to £3.9m (£3.0m last time), adjusted EPS up by 20% to 13.3p and the Interim Dividend is up by 13% to 4.25p per share. Recent acquisition integrations seem to be going well and well positioned to make more.

This looks pretty good apart from that Net Debt, now £20m (almost 30% of Mkt Cap).

5-Apr-2018 – 321.2p – £76.1m – PER 12.8

Trading Update For The 12 Months To End March 2018 – EBITDA expected to be up 23% (slightly ahead of market expectations), FY Dividend to be up 13%. Net Debt is £18.05m.

Results seem good and there’s things to like here (ROCE and Operating Margin for example) but NetDebt is still quite high at 25% of Market Cap. I just think there’s better stocks out there than this, I will remain Neutral.

10-Jul-2018 – 360p – £85.3m – PER 14.3

Final Results For The 12 Months To End March 2018 – Revenue up 34.8% to £46.4m (2017: £34.4m), PBT up 32.8% to £4.5m (2017: £3.4m), Fully Adjusted EPS up 26.2% to 27.69p (2017: 21.94p), FY Dividend up 12.9% to 8.75p (2017: 7.75p) with Year End Net Senior Debt at £17.6m (2017: £15.5m).

I still like this quite a lot and it’s breaking out to all time highs at present. If it wasn’t for that Debt level I could probably be swayed from my Neutral stance.

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