AdEPT Telecom plc, formerly AdEPT Telecom, is a United Kingdom-based company providing voice and data telecommunications services to both domestic and business customers. The Company provides fixed line calls, line rental, mobile and data connectivity products to thousands of business and residential customers across the United Kingdom. The Company offers a range of business telecom products for all sizes of business. AdEPT's Inbound Call Handling services offer a way to manage inbound calls, with online access enabling customers to implement changes instantly. AdEPT broadband products offer unlimited downloads and Internet speeds of up to 16 megabits, 50 megabits of Webspace. As at March 2010, AdEPT has completed the acquisition and integration of 16 telecom businesses, all of which have been integrated and trade under the AdEPT Telecom brand

http://www.adept-telecom.co.uk/data-connections/data-quote-tool

Shares - Adept Telecom's dividend could double over the next three years to 6p per share, according to stockbroker WH Ireland. It says the telecom services provider, trading at 120.5p, is highly cash generative as it doesn't own any major telecoms infrastructure, so there's low levels of capital expenditure.

EX-Dividend Wed 17 Sept 1.5p

UPDATE - AdEPT Telecom celebrates extension of council framework agreement

By John Harrington

October 14 2014, 12:26pm
UPDATE - AdEPT Telecom celebrates extension of council framework agreement

---ADDS BROKER COMMENT AND SHARE PRICE---

AdEPT Telecom (LON:ADT) has been awarded an extension to the public sector telecom framework it has with the Eastern Shires Purchasing Organisation (ESPO).

The telecom framework has been extended for a further two years until the end of October 2016.

Under this framework agreement AdEPT is the sole recommended supplier of landlines, broadband, session Internet protocol and Internet connectivity to the public sector and not for profit organisations nationwide.

Ian Fishwick, chief executive of AdEPT Telecom said that in the first two years of the ESPO agreement, 20 councils moved their service to AdEPT.

“This has made AdEPT one of the fastest growing suppliers in this part of the public sector market,” Fishwick said.

Picking up that theme, broker Northland Capital Partners said the public sector has been a good source of new business for AdEPT Telecom over the past few years and is likely to continue to provide further opportunities in the years to come.

“As well as ESPO, AdEPT was awarded approved supplier status to the Crown Commercial Services (central government bodies) in FY14 and is a long standing supplier under the Ja.net framework, whereby it can sell data connectivity and networks to UK Universities and Colleges,” the broker noted, adding that public sector revenue represented 11.9% of total revenue at the end of fiscal 2014, up from 4.5% a year earlier.

“We anticipate further growth this year as revenues ramp up in signed contracts and new contracts are secured,” AdEPT’s nominated adviser added, as it reiterated its ‘buy’ recommendation and 165p price target.

Shares in AdEPT were down 1.5p at 110p in lunchtime trading.

Contract renewal

RNS


RNS Number : 0372W

AdEPT Telecom plc

04 November 2014




AdEPT Telecom plc

("AdEPT" or the "Company")



AdEPT'S LARGEST CUSTOMER RENEWS FOR 3 MORE YEARS



AdEPT Telecom plc is pleased to announce that our largest customer has renewed their contract for another 3 years. The contract value is anticipated to be around £2.2 million.



Ian Fishwick, Chief Executive, said: "This is the third time that our largest customer has renewed their contract and it will extend our relationship to 9 years. Our largest customer has over 400 sites across the UK and this renewal is great testament to the fantastic level of service that we offer our multiple site customers."

Half Yearly Report

RNS


RNS Number : 5309W

AdEPT Telecom plc

11 November 2014






AdEPT Telecom plc



("AdEPT" or the "Company")



Interim results for the 6 months ended 30 September 2014



AdEPT, one of the UK's leading independent providers of award-winning landline voice and data connectivity telecommunications services, VoIP and mobile networks, announces its results for the 6 months ended 30 September 2014.



Highlights



· Total revenue increased by 11.3% to £11.3 million (2013: £10.2 million)

· EBITDA increased by 12.7% to £2.36 million (2013: £2.09 million)

· EBITDA margin increased to 20.8% (2013: 20.6%)

· Adjusted profit before tax increased by 13.9% to £2.2 million (2013: £1.9 million)

· Adjusted EPS increased by 12.2% to 8.38p (2013: 7.47p)



· Interim dividend increased by 50% to 2.25p per share (2013: 1.50p)



· Free cash flow increased by 29.1% to £2.2 million (2013: £1.7 million)

· Gearing down to 29% (2013: 38%)

· Net debt, after £2.1m acquisition payments, reduced by £0.7 million in the last 12 months to £3.2 million (2013: £3.9 million)



· Next generation services revenue increased by 29.0% to £3.0 million (2013: £2.4 million)



Business review

Total revenue increased by 11.3% through a combination of organic new contract wins, particularly in the public sector, and acquisitions. AdEPT is continuing to successfully make the transition from a traditional fixed line service provider to a complete communications integrator offering best of breed products from all major UK networks. Revenue from next generation services, including data connectivity, network solutions and cloud-based contact centre solutions increased by 29.0% to 26.8% of total revenue for the six months ended 30 September 2014 (September 2013: 23.2%). The demand for faster data connectivity speeds has continued and this is being achieved through a wider data connectivity service offering, including 10Gb, 40Gb and 100Gb Optical Spectrum Services (OSEA) data connectivity solutions under the Ja.Net framework for universities and colleges.



AdEPT has had continued success in the public sector space during the period winning a number of new contracts with councils within the public sector. Over the last 18 months AdEPT has been successful in gaining new contracts with more than 20 councils as a result of its various public sector framework agreements. In July 2014, the Company renewed the Ja.net framework agreement under which AdEPT is one of only a small number of companies approved to sell data connectivity and networks to UK universities and colleges. Shortly after the period end, in October 2014, the Eastern Shires Purchasing Organisation awarded AdEPT a two year extension to its sole supplier Telecom Framework to local government for calls, lines, broadband, super-fast broadband (fibre), data connectivity and SIP trunks. AdEPT is also an approved supplier under the Telephony Services Framework by Crown Commercial Service, the purchasing arm of the Cabinet Office. Approved supplier status under these framework agreements gives the Company authority to provide services to both local and central government bodies.



Financing

Free cash flow (cash generated from operations after interest) amounted to £2.2 million, representing an increase of 29.1% (September 2013: £1.7 million). £1.8 million of available funds was used to fund the initial cash consideration for the acquisition the issued share capital of Bluecherry Telecom Limited on 8 April 2014. These interim results include a full 6 month contribution from the acquisition of the entire issued share capital of Bluecherry Telecom Limited (further details are included in Note 6). In addition, a further £0.3 million was used to fund part of the deferred consideration in relation to the acquisition of certain trade and assets from Bluebell Telecom Limited which was announced on 6 August 2013.



Net debt and gearing

Net borrowings have been reduced by £0.7 million during the last 12 months, despite £2.1 million acquisition payments. Net borrowings at 30 September 2014 were £3.2 million (September 2013: £3.9 million).

This resulted in a reduction in gearing to 29% (September 2013: 38%).



Profit before and after tax

Adjusted profit before tax (adding back non-cash amortisation) increased by 13.9% to £2.2 million (September 2013: £1.9 million) arising entirely from the improved operating profit. Reported profit after tax increased by 11.9% to £0.8 million (2013: £0.7 million).



Earnings per share

Adjusted (basic) earnings per share has increased 12.2% to 8.38p for the six months ended 30 September 2014 (September 2013: 7.47p) as a result of the £0.27 million increase to EBITDA.



Dividends

The Directors have declared an interim dividend of 2.25p per Ordinary Share in respect of the year ending 31 March 2015, an increase of 50% over interim dividend for the comparative period (September 2013: 1.50p). This will absorb approximately £0.50 million of shareholders' funds (September 2013: £0.32 million). It is proposed by the Directors that this dividend will be paid on 10 April 2015 to shareholders who are on the register of members on the record date of 20 March 2015. Subject to the audited results for the year ending 31 March 2015, it is the intention of the Board to look to propose a final dividend with the March 2015 final results.



Strong free cash flow generation has continued since the end of the period, so there continues to be considerable scope for the Board to continue its progressive future dividend policy.



Outlook

This has been an excellent 6 months with improved results in all key areas. We continue to be highly cash generative and there is considerable scope for a progressive dividend policy whilst continuing to identify and integrate earnings-enhancing acquisitions.

AdEPT Telecom: WH Ireland moves target price from 170p to 185p, keeping its buy recommendation. Northland moves target price from 165p to 175p and maintains a buy recommendation.

AdEPT Telecom dials up the right numbers

By John Harrington

November 11 2014, 4:13pm
On the current share price of 125p, up 4.2% on the day at the time of writing, the projected FY2017 dividend puts the dividend yield at a meaty 5.2%.
On the current share price of 125p, up 4.2% on the day at the time of writing, the projected FY2017 dividend puts the dividend yield at a meaty 5.2%.


---ADDS BROKER COMMENT AND SHARE PRICE---

AdEPT Telecom (LON:ADT) has signalled strong confidence in the future by bumping up its interim dividend by 50%.

The results for the six months to 30 September revealed the half-year divi has been increased to 2.25p from 1.50p last year, on the back of a 12.7% increase in underlying earnings (EBITDA) to £2.4mln from £2.1mln last year.

The increase in underlying earnings extends the company’s enviable streak of increasing half-year EBITDA each year to 12.

Chairman Roger Wilson described the six-month period as an excellent one in which results improved in all key areas.

Adjusted profit before tax increased by 13.9% to £2.2mln from £1.9mln, while free cash flow jumped 29.1% to £2.2mln from £1.7mln.

“There’s no point generating profit if it does not turn into cash,” finance director John Swaite told Proactive Investors.

Net debt has come down by £0.7mln during the last 12 months to £3.2mln, despite the company spending £2.1mln on acquisitions.

Strong free cash flow generation has continued since the end of the reporting period and Swaite told Proactive Investors the company could probably be cash positive in 12 to 18 months, but with interest rates so low the company saw little point when it could earn a better return by acquiring businesses.

Total revenue in the period rose by 11.3% to £11.3mln from £10.2mln, helped by acquisitions but also as a result of new contract wins, an increasing proportion of which are coming from the public sector.

Revenue from next generation services, including data connectivity, network solutions and Cloud-based contact centre solutions increased by 29.0% to 26.8% of total revenue, while the proportion of revenue from old school phone calls is down to 26% of total revenue.

“Calls are a much smaller part of what we do now,” chief executive officer Ian Fishwick told Proactive Investors, adding that some of the pricing pressure in the sector is beginning to ease.

“Fixed lines into buildings are not going to disappear,” predicted Fishwick, but it is clear the company’s focus is increasingly moving to other areas.

“The public sector is increasingly important to us,” Fishwick said, noting that the government is keen to have a higher proportion of small to medium enterprises (SMEs) providing data connections to loosen the grips of the big beasts in the telecoms sector.

The company has bagged more than 20 council deals over the last 18 months and is present on three procurement frameworks; frameworks essentially identify approved government procurement organisations that government agencies can buy from, without having to go through the hassle of putting a contract out for tender, and so are much more significant than individual tenders.

“We are the SME that is leading that charge,” Fishwick declared.

AdEPT's nominated adviser (Nomad) said the results demonstrate good progress on a number of fronts.

A better than expected margin improvement has prompted the broker to upgrade its forecasts for the current financial year (FY15) and next (FY16), while it has introduced forecasts for the year to end-March 2017.

The company is now tipped to make an adjusted profit before tax of £4.2mln this year, up from £3.7mln last year; previously the broker had pencilled in a pre-tax profit figure of £3.9mln.

FY16 adjusted profit before tax is seen rising to £4.3mln (previous estimate: £3.9mln), while the new FY17 number is £4.4mln.

The interim dividend was also higher than Northland expected and it has upped its dividend forecasts by half a penny for the current year and next.

Northland reckons the full-year dividend this year will be 4.5p, and next year's divi will be 5.5p, and it is predicting the FY17 dividend will be 6.5p.

"The share price has failed to reflect the progress made and the potential for further growth both organically and through acquisition and the current discount to the peer group is unwarranted," the broker maintains.

It reiterated its 'buy' rating and upped its price target to 175p from 165p.

12 Nov Beaufort... N/A Speculative Buy
11 Nov WH Ireland... 185.00 Buy
11 Nov Northland... 175.00 Buy

AdEPT Telecom lands NHS Trust contract

By John Harrington

November 25 2014, 7:15am
AdEPT Telecom is one of the UK's leading independent providers of voice and data telecommunications solutions
AdEPT Telecom is one of the UK's leading independent providers of voice and data telecommunications solutions


AdEPT Telecom's (LON:ADT) expanding footprint in the public sector had widened further with the award of a new NHS Trust contract.

The initial contract term is for 12 months, and the value of the contract is expected to be in the region of £200,000.

"This contract award is significant as it is AdEPT's first NHS Trust customer contract to be awarded under one of AdEPT's public sector frameworks and forms part of the continuing focus of the company on public sector business," said Ian Fishwick, chief executive of AdEPT.

Fishwick has previously explained to Proactive Investors the significance of frameworks, which essentially identify approved government procurement organisations that government agencies can buy from, without having to go through the hassle of putting a contract out for tender.

AdEPT Telecom to buy back up to 15% of shares

By Philip Whiterow

December 18 2014, 4:42pm
The telecoms services provider can buy back up to 15% of its shares in issue through the scheme.
The telecoms services provider can buy back up to 15% of its shares in issue through the scheme.


AdEPT Telecom (LON:ADT) has launched a limited share buyback scheme just weeks after it raised its interim dividend by 50%.

The telecoms services provider can buy back up to 15% of its shares in issue through the scheme.

AdEPT’s underlying earnings rose by 13% in the half year to September to £2.4mln from £2.1mln. Its dividend hike was a reflection of strong cash flow and confidence in the future, it said then.

Shares today rose 6% to 146.2p, just shy of the high for the year.

19 Dec Northland... 175.00 Buy

AdEPT Telecom buyback highlights strong cash generations says broker

By Philip Whiterow

December 19 2014, 2:38pm
The telecoms services provider is to buy back up to 15% of its shares in issue through the scheme.



AdEPT Telecom’s (LON:ADT) share buyback plans highlight its low capex business model and strong working capital management, says broker Northland.

The telecoms services provider is to buy back up to 15% of its shares in issue through the scheme.

Northland added that AdEPT’s cash generation has been used already to reduce net debt, fund acquisitions and raise the dividend, though it expects the buybacks will be a very gradual process that will not impact the growth strategy.

Buy with a 175p price target remains the broker’s view.

Shares today were trading at 145.9p, up 2%

6 Jan Northland... 175.00

Trading Update
RNS
RNS Number : 3542J
AdEPT Telecom plc
07 April 2015

AdEPT Telecom PLC

("AdEPT" or the "Company")

Trading Update

AdEPT Telecom plc, one of the UK's leading independent providers of voice and data telecommunications solutions, today announces a trading update for the year ended 31 March 2015 (ahead of its final results which are expected to be announced in early July 2015).

· £1.4m (47%) reduction in net borrowings to £1.6m was £1.1m better than consensus market expectations

· EBITDA increase in line with market expectation of 14% rise year-on-year

· Board recommendation of an improved final dividend of 2.50p (2013: final 1.50p)

· Total dividends declared for the year of 4.75p represents an increase of 58% over the prior period

Trading performance

The Company is pleased to announce that it anticipates that underlying EBITDA will be ahead of the previous year and in line with the market consensus expectation of a 14% rise year-on-year. Adjusted* profit before tax is expected to be ahead of the prior year and in line with market consensus expectation. Turnover is expected to be nearly 6% ahead of the previous year but slightly below market expectations.

* adjusted for amortisation and share option costs

Cash flow and net debt

The reduction in net borrowings in the year of £1.4m (47%) was significantly ahead of market expectations being reduced to £1.6m as at 31 March 2015. AdEPT continues to generate consistently strong free cash flow. This reduction in debt is after payment of (i) £0.36m deferred consideration for the acquisition of customer contracts from Bluebell Telecom Limited, (ii) £1.78m initial consideration for the acquisition of Bluecherry Telecom Limited and (iii) a 108 per cent. increase in dividends paid.

Dividends

AdEPT announced an interim dividend of 2.25p per share in its September 2014 interim statement, which will be paid to shareholders on 10 April 2015. The Board today announces that as a result of strong free cash flow it recommends an improved final dividend of 2.50p (2013: 1.50p) per Ordinary Share which, subject to Shareholder approval at the Annual General Meeting later in the year, will be paid in October 2015. Total dividends declared during the year ended 31 March 2015 of 4.75p per Ordinary Share represent a 58 per cent. increase year-on-year (2013: 3.00p).

7 Apr Northland... 175.00 Buy

AdEPT Telecom gains more firepower with improved banking facility

By John Harrington

April 22 2015, 4:54pm
Roger Wilson, chairman of AdEPT Telecom plc, said:'The new bank facility will enable the company to continue with its strategy of consolidation of the fragmented fixed line telecom market in the UK.'
Roger Wilson, chairman of AdEPT Telecom plc, said:"The new bank facility will enable the company to continue with its strategy of consolidation of the fragmented fixed line telecom market in the UK."


Acquisitive telecoms firm AdEPT Telecom (LON:ADT) has sewn-up a new improved banking facility that will fuel its acquisition growth strategy.

The new £15mln revolving credit facility will be in place for five years and replaces the previous £5mln arrangement, which had 18 months to run.

The new increased debt facility will be used by the company to fund the strategic acquisition of businesses within the fragmented fixed line telecom market.

Roger Wilson, chairman of AdEPT Telecom, said:" We continue to identify earnings enhancing acquisition opportunities, and the increased scale and structure of this new debt facility will provide greater flexibility and support for future growth."

Shares in Adept closed at 175p, up 5p on the day.

UPDATE - AdEPT Telecom to acquire rival in earnings enhancing deal worth up to £10.5mln

By Ian Lyall

May 01 2015, 3:45pm
AdEPT reckons the two firms have a well matched customer base and complementary product set with little overlap.
AdEPT reckons the two firms have a well matched customer base and complementary product set with little overlap.


---ADDS BROKER COMMENT AND SHARE PRICE---

Shares in AdEPT Telecom (LON:ADT) rose almost 5% after it said it is acquiring rival voice and data group Centrix for up to £10.5mln.

It is expected that Centrix, which supplies Avaya phone systems to business, will be immediately earnings enhancing.

Analysts said it AdEPT had “secured a keen deal” that values Centrix at just over a year’s revenues.

It will hand over an initial £7mln, with up to a further £3.5mln paid dependent on the newly purchased business’s ongoing financial performance.

Last year Centrix turned over £8.75mln, generating a pre-tax profit of £2.26mln.

Around 80% of those revenues are recurring given the firm’s long-term relationships with medium-sized and large companies.

AdEPT reckons the two firms have a well-matched customer base and complementary product set with little overlap.

“Centrix is an excellent fit because, like AdEPT, it is asset-light, complements and builds upon AdEPT's existing expertise and skills, and further extends its offering in the unified communications space,” said AdEPT chief executive Ian Fishwick.

“Centrix has a high level of recurring revenue and offers a well-developed customer base with long term relationships across a range of medium and large enterprises, including the related vertical markets of public sector and healthcare.”

The shares rose almost 6.2% to 184.3p, valuing the business at just over £40mln.

According to the broker Northland Capital, the purchase will be funded from the recently agreed £15mln debt facility.

It reckons AdEPT has “headroom for further accretive acquisitions in the fragmented reseller market.”

Analyst David Johnson added: “The Centrix acquisition represents a significant step in AdEPT’s stated strategy of increasing its proportion of larger customers, expanding its public sector presence and reducing its reliance on calls and line rental.

“Centrix also brings long term relationships with Avaya and Medusa with the scope for system sales.

“Centrix is a long established and highly profitable business and AdEPT’s management has secured a keen deal.”

He has raised his revenue forecast by 25% and EBITDA by 22%. Johnson has also increased his price target from 175p a share to 210p.

6 May Northland... 210.00 Buy

StockMarketWire.com
AdEPT Telecom posts pre-tax profits of £2.1m for the year the end of March - 15.8% up on last time.

The group reports its 12th consecutive year of increased underlying EBITDA - up 13.5% at £4.6m - on margins of 20.8%, up from 19.4% last time.Revenue increased by 5.8% to £22.1m and the total dividend of 4.75p per share (interim 2.25p, final 2.50p) is up from 3.00p in 2014.

Chairman Roger Wilson said: "AdEPT has delivered its 12th consecutive year of increased EBITDA and continues to deliver consistently free cash flow generation. The Company achieved a significant reduction to net borrowings despite undertaking an acquisition during the year. The continued strong cash generation has funded a 58% increase to dividends declared during the year and the Board is confident that continued focus on underlying profitability and strong cash generation will support a progressive dividend policy.

"Organically the Company has strengthened its position during the year through successfully renewing and leveraging its various frameworks to increase the scale of its public sector customer base. The new larger debt facility put in place after the year end has been partially used by the Company to complete a further acquisition in May 2015, which enables the Company to extend its product portfolio to include specialist unified communications."