TIDMADT 
 
RNS Number : 0076K 
AdEPT Telecom plc 
12 April 2010 
 
                                AdEPT Telecom PLC 
                           ("AdEPT" or the "Company") 
                                 Trading Update 
AdEPT Telecom plc today issues a trading update for the year ended 31 March 2010 
ahead of Final results which are expected to be announced on 6th July 2010. 
The Company is pleased to announce that, despite the challenging economic 
conditions in the UK over the past 12 months, underlying EBITDA will be ahead of 
the previous year, and above analysts' forecasts. Net debt will be below market 
expectations and revenue will be in line with market expectations. 
Since its' inception in 2003, AdEPT has increased underlying EBITDA for seven 
consecutive years. 
Our focus of concentrating on larger customers has been beneficial. AdEPT has 
c60,000 lines, and our Premier Customer division, comprising our 200 largest 
customers, now accounts for one-third of our revenue. Average contract length 
has been enhanced through an increased focus on providing multi-product 
solutions.  At March 2010, customers taking 3 or more of our products now 
account for 22% of monthly revenue [15% in March 2009]. 
AdEPT has broadened its product range particularly with regard to data 
connectivity and mobile, both of which have seen greater than 60% year-on-year 
revenue growth. Data contracts totaling over GBP0.5m were signed in the year. 
During the financial year the Company signed a partnership agreement with 
Callstream, one of the UK's leading suppliers of 21st century network-based 
inbound call handling solutions. Complex inbound solutions have been the 
catalyst for signing over GBP1.5m of multi-year, multi-product contracts with 
larger customers. 
AdEPT is increasingly seen as one of the UK's leading suppliers to multi-site 
customers and we now have over 700 multi-site customers ranging in size from 2 
sites to c2,500. A national auto chain was a major contract win in the year with 
over 200 sites and an estimated contract value exceeding GBP0.5m. 
Our previous reliance on call revenues has been much reduced with call revenue 
providing only 47% of revenue in March 2010 [56% in March 2009]. 
The Company has seen a significant reduction in underlying operating costs in 
the year ended 31 March 2010 due to the operational efficiencies associated with 
managing larger customers, together with savings derived from the restructuring 
undertaken towards the end of the 2009 financial year. 
A key strength of AdEPT is its consistent, proven ability to generate strong 
cash flows.  As a result of the Company's focus on underlying profitability and 
cash conversion, net debt has been reduced from a peak of more than GBP12m in 
November 2007 to GBP9.2m at 31 March 2010.  Free cash flow of GBP5.8m has been 
generated since we acquired Telecom Direct in November 2007 and in addition to 
the debt reduction of GBP2.8m a further GBP3m has been paid in restructuring 
costs largely associated with the assimilation of Telecom Direct's business. 
This strong level of cash generation is expected to continue. 
We continue to monitor closely customer payments, and we are pleased to report 
thatdebtor periods have not been extended during the year, despite the economic 
backdrop. 
Roger Wilson, Non-Executive Chairman of AdEPT Telecom, said: "The proven strong 
cash flow generation of AdEPT has demonstrated the resilience of the Company's 
business model in a tough economic environment.  The broadening of the product 
offering will ensure that the Company continues to maximize opportunities and 
provide complete communication solutions for customers." 
For more information please contact: 
+------------------------------------------+----------------------+ 
| AdEPT Telecom Plc                        |                      | 
| Roger Wilson, Chairman                   |        07786 111 535 | 
| Ian Fishwick, Managing Director          |        01892 550 225 | 
| John Swaite, Finance Director            |        01892 550 243 | 
|                                          |                      | 
+------------------------------------------+----------------------+ 
| Astaire Securities Plc                   |                      | 
| Shane Gallwey                            |        020 7448 4400 | 
+------------------------------------------+----------------------+ 
About AdEPT Telecom plc: 
AdEPT Telecom plc is one of the UK's leading independent providers of voice and 
data telecommunications solutions.  The Company provides fixed line calls, line 
rental and data connectivity solutions to thousands of residential and business 
customers across the UK.  AdEPT Telecom has strategic relationships with tier-1 
suppliers such as BT, Cable & Wireless and Carphone Warehouse. The Company 
employs 65 members of staff at its offices in Tunbridge Wells, Kent. 
AdEPT Telecom is listed on the London Stock Exchange (Ticker: ADT). For further 
information please visit: www.adept-telecom.co.uk 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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