Adept Telecom (ADT)

Adept Telecom ADT Logo

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


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.

27-Sep-2018 – 380p – £90.1m – PER 12.6

AGM Statement – Company name change to “AdEPT Technology Group”, Interim Dividend up 15.3% – Confident results will support this.

I bought in here recently and although this isn’t the most reassuring of updates (in-line, ahead, ???) I will continue to hold for now – Of course with an eye on the market reaction to this update.

13-Nov-2018 – 395p – £93.6m – PER 13.1

Interim Results For The 6 Months To End September 2018 – Revenue up 9.5% with Adjusted PBT up 13.4% and EPS up 11.7% – The Interim Dividend is up 15.3%. Net Debt is up to £25.1m (£20.8m last year). Trading continues to be in-line with management expectations.

I am Long here and these results are exactly setting the world on fire. Further to this I don’t like the increase in Net Debt – I continue to hold but will of course keep an eye on the market reaction here, I am a little nervous!

3-Apr-2019 – 330p – £78m – PER 10.3

Trading Update For The 12 Months To End March 2019 – Seems in-line with Revenue and Dividend growth just over 10%, Net Debt stands at £27.2m (lower than expectations).

Pity there’s no mention of Profit/EPS here at all – I remain a cautious holder.

26-Apr-2019 – 320p – £76m – PER 10

Acquisition – Buys ACS Group (£5.24m less Net Debt), earnings enhancing from completion, increased Debt facility (from £35m to £40m).

I am Long here but my conviction is not high, not sure extending the Net Debt is a good move, remains a low conviction holding for now.

Subsequent note: I sold out here a couple of weeks later after as this acquisition just made the Debt level look a little stretched to me – I also saw 270p or so a fair value price over 2 years.

25-Sep-2019 – 359p – £85m – PER 11

Trading Update For The 6 Months To End September 2019 – Lots to say and generally seems to be in-line.

And ex-holding which I exited as I was a bit uncomfortable with the rate of acquisition and the Debt level – I also consider 300p or so to be fair value (given a 2 year view).

PPPR Session Banner