Trading Update (9106C)
May 09 2012 - 2:00AM
UK Regulatory
TIDMADT
RNS Number : 9106C
AdEPT Telecom plc
09 May 2012
AdEPT Telecom PLC
("AdEPT" or the "Company")
Trading Update
AdEPT Telecom plc (AIM: ADT) today issues a trading update for
the year ended 31 March 2012 ahead of final results which are
expected to be announced in early July 2012.
The Company is pleased to announce that it expects that
underlying EBITDA will be in line with the previous year and ahead
of analysts' forecasts. Turnover is expected to be slightly below
analysts' forecasts but adjusted profit before tax is expected to
be significantly ahead of the prior year and ahead of market
expectations. The reduction in net borrowings will be ahead of
market expectations.
Traditional fixed line network service revenues have been below
expectation following the impact of regulation reducing mobile call
rates. However improved gross margin percentages have resulted in
stable absolute gross margins.
This has been partially offset by 20% growth in revenues
generated from 'cloud' or network-based inbound call handling
solutions and 40% growth in data connectivity revenues.
AdEPT has broadened its product range further during the year
particularly with regard to data connectivity and next generation
products, including MPLS & E-LAN networks, fibre broadband,
hosted and cloud telephony. The first revenues from hosted and SIP
solutions provided by AdEPT VoIP for Business have been generated
during the second half of the year, albeit at a relatively low
level.
AdEPT continues to consistently generate strong cash flow. The
focus on underlying profitability and cash conversion of operating
profit has resulted in a reduction to net borrowings of GBP2.02m
during the year to GBP5.35m at 31 March 2012.
AdEPT announced a maiden dividend of 0.5p per share in its
interim statement, which was paid to shareholders on 20 April 2012.
Despite the continuing uncertainty over the general direction of
the economy, the Board is confident that continued strong cash
generation, and further reductions in the level of debt in future,
will support a progressive dividend policy.
For more information please contact:
AdEPT Telecom Plc
Roger Wilson, Chairman 07786 111 535
Ian Fishwick, Chief Executive 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, VoIP 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, Virgin and TalkTalk Business. The Company
employs 48 members of staff at its offices in Tunbridge Wells,
Kent.
AdEPT Telecom is listed on the London Stock Exchange (Ticker:
ADT.L). 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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