Trading Statement (0005G)
May 05 2011 - 4:29AM
UK Regulatory
TIDMADT
RNS Number : 0005G
AdEPT Telecom plc
05 May 2011
AdEPT Telecom PLC
("AdEPT" or the "Company")
Trading Update
AdEPT Telecom plc today issues a trading update for the year
ended 31 March 2011 ahead of final results which are expected to be
announced in early July 2011.
The Company is pleased to announce that, despite the challenging
economic conditions in the UK over the past 12 months, underlying
EBITDA will be slightly ahead of the previous year, and in line
with analysts' forecasts. Turnover will also be in line with
analysts' forecasts. Net borrowings will be below market
expectations.
Since its' inception in 2003, AdEPT has increased underlying
EBITDA for eight consecutive years.
AdEPT has broadened its product range further during the year
particularly with regard to data connectivity, which has seen
greater than 25% year-on-year revenue growth. Data services, such
as Ethernet high speed access (up to 1Gigabit speeds) and MPLS
networks, have been added to the product portfolio. We are
currently in the process of launching 40Mb fibre broadband
utilising BT's 21(st) century network upgrade that offers
fibre-to-the-cabinet in the street.
AdEPT has launched what we believe to be the UK's most advanced
VoIP for BUSINESS product range, and has built a new National VoIP
Demonstration Centre at our headquarters in Tunbridge Wells The
service, powered by BT Wholesale, includes 7 different ways of
deploying VoIP for businesses. SIP trunking and hosted voice
inter-work on a single BT network with dual resilience offered by 2
data centres in London. All VoIP services are managed via a single
web portal. The VoIP products offer comprehensive solutions for
every size of business: large and small sites as well as
homeworkers.
AdEPT has had continued success with new 'cloud' or
network-based inbound call handling solutions being provided to a
number of major customers, including a new contact centre for a
major UK airline.
The focus of concentrating on larger customers has continued to
be beneficial. The AdEPT Premier Customer division, comprising the
200 largest customers, accounts for approximately one-third of
total revenue. Average contract length has been enhanced through an
increased focus on providing multi-product solutions. At March
2011, customers taking 3 or more AdEPT products now account for 28%
of monthly revenue (22% in March 2010).
The Company has seen a further reduction in underlying operating
costs in the year ended 31 March 2011 due to the operational
efficiencies associated with managing larger customers.
A key strength of AdEPT is its consistent, proven ability to
generate strong cash flows. As a result of the Company's continued
focus on underlying profitability and cash conversion, net
borrowings have been reduced by GBP1.85m during the year to
GBP7.36m at 31 March 2011. This strong level of cash conversion is
expected to continue.
Roger Wilson, Non-Executive Chairman of AdEPT Telecom, said:
"The improved EBITDA and net debt reduction of GBP1.85m is
underpinned by focus on underlying profitability through improving
margins on customer contracts, operational efficiencies and tight
credit control. The further broadening of the product offering,
particularly with regard to data connectivity, will ensure that
AdEPT can continue to provide complete communication solutions for
customers. AdEPT is increasingly seen as one of the UK's leading
COMMS integrators supplying best of breed products from every major
UK supplier, tailored to meet customer requirements."
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
Northland Capital Partners Limited
Shane Gallwey 020 7796 8823
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 a complete communications portfolio of fixed line
calls, line rental, mobile and data connectivity products. AdEPT's
tailored services are used by thousands of businesses and
residential customers across the UK and are brought together
through the strategic relationships with tier-1 suppliers such as
BT, Cable & Wireless and Carphone Warehouse. The Company
employs 46 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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