AdEPT Telecom's shares rise on expected underlying EBITDA rise
Shares in AdEPT Telecom are up almost 12% after the company said it sees underlying EBITDA up 26% on the year, and recommends an increased final and therefore total dividend.
Adept Technology Group
200.50p
16:55 06/04/23
Fixed Line Telecommunications
1,762.53
13:09 19/04/24
FTSE AIM All-Share
742.19
13:10 19/04/24
"Turnover is expected to be approximately 16% ahead of the previous year and above market consensus expectation," said the company in a trading update for the full year.
AdEPT also anticipated underlying EBITDA would be about 26% ahead of that in 2015, and also ahead of consensus market opion for an 18% rise on the year.
The board was recommending an increased final dividend of 4.00p a share, from 3.5p, taking the proposed total payment to 7.75p a share, up 19% over the prior period.
Net borrowings of £15.8m as at 31 March 2017 were £1.3m lower than market expectations. AdEPT also said it continued to generate consistently strong free cash flow.
"This improved performance in debt reduction was after payment of £9.7m aggregate initial consideration for the acquisitions of Comms Group UK Ltd, CAT Communications Ltd and OurIT Department Ltd.
It was also after payment of £3.0m deferred consideration for the acquisition of Centrix Ltd, and a £0.4m increase in dividends paid in the year.
At 10:45 GMT, shares in AIM-traded AdEPT Telecom were up 11.81% to 355p each.