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As details below 8th February 2023 saw these removed from acc today .
Relived to find take over not gone bust . ( 9% loss )
Under the terms of the Acquisition, each AdEPT Shareholder will be entitled to receive:
for each AdEPT Share: 201 pence in cash
Never as good as the INVESCO UK OPPORTUNITIES fund , hindsight should of took small profit month after purchase .
No price movement today 190/195 the spread 5.41% ( 30% ) yesterday at 3pm on RNS .
Rns at 3pm be interesting if market thinks another bid might come in reflected maybe in tomorrow share price .
I see on 21st February 2020 there was a book-build placing at price of 320 pence per Placing Share .
To raise 4 m they were oversubscribed and raised 4.25 m .
Not always cheap these placings .
Trade history shows I bought these on 4th March 2020 , at *220p
They fell to 185p after my purchase on 3/4/2020 , then gained to 309p 7/5/2021.
Lesson take your profits when you can .
They had dropped to 103p by 23rd December 2022 , this offer more then double that recent price if i look on bright side .
So will be at a 9% loss if it concludes at this price .
Maybe another bid could come ?
Looks like there might of been a few divs in the time invested .
AdEPT Technology Group PLC - Kent, England-based managed services and telecoms provider - Agrees with Thetis Bidco Ltd on terms of GBP50.3 million cash offer for its entire share capital, to be implemented via a scheme of arrangement. Each AdEPT shareholder is entitled to 201 pence per share, representing a premium of 75% to the closing price of 115p per share on February 7.
As part of the acquisition, AdEPT has cancelled its interim dividend of 2.50p for the six months ended September 30. If the transaction does not complete, the board says it will reinstate the dividend.
Current stock price: 200.00 pence, up 74% in London on Wednesday afternoon
12 month change: down 8.3%
Nice
Well illiquid company so not a big trade in company shares.
The issue which is putting off investors is the debt. The company is aiming to deleverage over next 18 months at which point we'll see how much of the £31 million senior debt and the around £6 million loan notes they have paid off.
If you choose your moment you san buy within the spead ie I picked up 3000 at £1.11 whilst the spread is £1.05-£1.20.
I also note although the company may be good value no real management or large fund buys,
Why is there such a massive spread on this? It looks like a solid company with recurring business- "sticky" customers - but the thing that's putting me off is that you lose 15% a soon as you buy it.
Judith Mackenzie (Downing) on HSP on Vox Markets : minute 33:07
HTtps://www.**********.co.uk/articles/vox-markets-fund-manager-series-judith-mackenzie-of-downing-asset-management-f6461eb/
A bit more detail on the Canon - Adept deal. It sounds promising.
HTtps://www.canon.co.uk/press-centre/press-releases/2022/10/canon-uk-forms-strategic-alliance-with-award-winning-it-managed-service-provider-adept-technology-plc/
Canon UK forms strategic alliance with award-winning IT managed service provider AdEPT Technology PLC
United Kingdom, 17th October 2022 – Canon UK is proud to announce it will be launching a new offering which will deliver exceptional quality Managed IT Services to its customers in partnership with AdEPT.
This exciting alliance will combine Canon’s renowned portfolio of print, imaging and software solutions with AdEPT’s award-winning managed IT services and technical knowledge. The partnership will allow Canon customers to have access to a wealth of different IT services as well as expertise around digital strategy, unified communications, print, and IT infrastructure management.
Initially, services offered will include IT health checks, cyber security assessments, cloud readiness and network evaluations as well as wider IT audits. A full portfolio of IT solutions as well as counsel on meeting compliance standards, effective hybrid working practices, process optimisation and supplier consolidation will follow in 2023.
The offering will be delivered through an alliance with AdEPT Technology PLC (AdEPT), one of the UK's leading independent providers of managed services for IT, cloud-services, unified communications, connectivity, and voice solutions working with organisations across a wide range of sectors.
Craig Leverington, Canon Business Services Director, Canon UK & Ireland said: “With cloud adoption and digitisation now commonplace across almost every organisation and sector, it’s vital our customers are fully supported on their digital journey. With many years’ experience working with large organisations to optimise IT infrastructure, we’re excited to have formed a partnership with AdEPT on this new venture.”
Phil Race, CEO, AdEPT Technology PLC said: “Technology systems have so many moving parts, and many organisations are seeking out counsel on how to rationalise, optimise and reduce complexity, and in turn reduce cost. We’re thrilled to be partnering with Canon to offer its customers expert support, and the best technology solutions to drive success for the future.”
Canon IT Services, powered by AdEPT will be available for select Canon customers from October 2022, before being expanded to its wider customer base in the coming months.
Monty, sounds valid & certainly presents a buying opportunity if there's nothing nasty happening in the background. Debt interest seems well covered & can't see much else that could cause alarm so given I'm fully loaded just need to wait for that long awaited re-rate.
Good luck.
I am equally non-plussed. I have some suspicion that the market is marking stocks down first thing to see whether there is buying support and if not down it goes for another day. In an illiquid small cap stock, if there is no ready support, this can cause a quite a dramatic fall (or buying opportunity!). A good example of this is Equals that was constantly marked down but eventually made a great recovery.
Anyone any idea why the mark down? Spread out to more than 10% with virtually zero trades. The current year P/E is less than 4. Makes no sense to me.
Buy tip from Hot Stock Rockets below.
Technology managed services business AdEPT Technology Group (LSE:ADT) has issued an AGM trading statement, including noting a return to interim dividend payments with a 2.5p per share payout announced.
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This follows it having “secured several important new contract wins and renewals since the start of the new financial year” and noting “two specific initiatives that are expected to have a positive impact on the group in the coming months, adding to the board’s confidence in a strengthening performance in H2”. Those are a strategic alliance with Canon (UK) and an announced £150 million government fund for faster and more reliable connectivity for schools.
It notes it is currently being hindered by global chip shortages but still “anticipate the group’s EBITDA:Senior net debt ratio to be less than 2x within 12 months” and adds that underlying demand for digitisation and cloud based services remain strong.
With broker forecast full year earnings per share of 28.5p, the current 120p share price looks much too harsh an appraisal. We look for a significant recovery on delivery even close to forecasts and note half-year results are expected in mid-November. With that and considering the shares could easily double from here on earnings and de-leveraging delivery, Buy.
Downing Strategic Micro Cap. I.T. July factsheet comment :-
"AdEPT Technology (+3.7%) reported a robust set of final results with impressive revenue recovery, up 18% to over £68 million, and underlying EBITDA up 21% to almost £12 million. Cash conversion was also strong, but senior net debt increased after the payment for the Datrix acquisition. We believe that AdEPT remains attractively positioned with over 70% recurring revenues and exposures into public sector, healthcare, and cloud services. We believe that high debt levels remain the biggest barrier to a re-rating of AdEPT and welcome management’s recent commitment to de-leverage."
Yuri
You on the right bb?
If you consider these to be poor results I'd love to know which companies you consider worthy of further research.
Revenue, margins and EPs all up year on year and continuing to head in the same direction in the current year and no doubt beyond, in the cloud storage and SaaS sector with huge growth. Revenue split between private & public sector, all gov depts or massive companies with incredibly high recurring revenues. All at a current p/e of 5.4. Love know what you're smoking.
It was a non cash loss
The operating loss of £0.2m was impacted by non-cash items, including:
£7.2m amortisation of intangible assets arising from acquisitions undertaken during prior years;
£0.7m non-cash depreciation; and
£0.1m share-based payments.
Well, for some reason's I can clearly see loss of 5m+ in full year results suggesting there's something fundamentally wrong with this analyst' "expectations".
It is also a bit unusual to have green sp movement with such poor results.
The following link is a piece by Mark Watson-Mitchell from Master Investor, it was originally published on May 23rd this year.
Full year results are due this Thursday, house broker Singer Capital Markets are expecting profits of £7.7m and earnings per share of 26.8p.
This indicates a p/e of just over 5.
This year's expected 28.5p brings the p/e down further to 4.8.
Singer's price target is 350p, Mark Watson-Mitchell's is 325p.
Whichever angle you come from AdEPT is ridiculously undervalued at it's current 137.5p and must surely start to re-rate after this Thursday's results.
https://masterinvestor.co.uk/latest/adept-technology-really-going-for-strategic-growth/
https://*********************/companies/uk/adept-technology-group-plc/research/singer-capital-markets/strong-q4-order-intake-though-headwinds-persist/b133346d-92d3-4384-a12d-dc0363803f8b
hxxps://*********************/companies/uk/adept-technology-group-plc/research/singer-capital-markets/strong-q4-order-intake-though-headwinds-persist/b133346d-92d3-4384-a12d-dc0363803f8b
Singer Capital Markets has published a new research note on AdEPT Technology Group Plc. This is a snippet from it :-
Strong Q4 order intake, though headwinds persist
AdEPT ended FYMar22 with a “markedly stronger Q4 order intake” and revenues and adj. EBITDA broadly in line with consensus. This suggests Managed Services achieved mid-single digit organic revenue growth despite the pandemic and hardware shortages. FCF was impacted by largely one-off costs of £2m (restructuring, strategic review and inventory build). Supply chain issues are likely to persist in FY23 with additional headwinds such as higher NI contributions and general macro uncertainty. We deem it prudent to trim FY22 and FY23 revs by 1% and EBITDA by 5%. With both the potential and intention to accelerate organic growth, the FCF yield of 12% and P/E of 6x offer extraordinarily deep value as ADT deleverages.