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Started: ripley94, 8 Feb 2023 17:30
Last post: ripley94, 26 Apr 2023 13:21
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 .
Nice
Started: JimNeilWade, 9 Dec 2022 11:54
Last post: RedNinja, 9 Dec 2022 12:20
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.
Started: RedNinja, 28 Oct 2022 21:00
Last post: RedNinja, 28 Oct 2022 21:00
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/
Started: RedNinja, 22 Oct 2022 13:03
Last post: RedNinja, 22 Oct 2022 13:03
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.
Started: Nonegspleeze, 3 Oct 2022 14:17
Last post: Nonegspleeze, 3 Oct 2022 18:14
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.
Started: Nonegspleeze, 4 Jul 2022 16:40
Last post: Nonegspleeze, 23 Sep 2022 10:59
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.
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/
Started: RedNinja, 12 Aug 2022 14:51
Last post: RedNinja, 12 Aug 2022 14:51
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."
Started: RedNinja, 8 Apr 2022 16:17
Last post: RedNinja, 8 Apr 2022 16:18
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.
Started: Troajan, 7 Apr 2022 15:41
Last post: Troajan, 7 Apr 2022 15:41
Started: RedNinja, 27 Nov 2021 14:25
Last post: RedNinja, 27 Nov 2021 14:25
Investor's Champion comment (subscriber access) on last results :-
HTtps://www.investorschampion.com/channel/blog/plenty-of-promise-in-these-results-and-updates
"Despite the attractive cash generation, we aren’t sure the market likes the debt load carried by this business. Net senior debt at the period end was still a hefty £31.2m, and £38.1m if one includes the dilutive convertible debt.
The outlook statement confirmed that AdEPT is on track to achieve management expectations for the year ending 31 Mach 2022.
Full year March 2022 adjusted forecasts are for earnings of 28.8p. At the current 216p share price this represents a very modest earnings rating of only 7.5x, although forecasts allow for plenty of adjustments.
The c£54m market capitalisation and Enterprise Value of £92.1m (including the convertible) equates to 8.9x forecast adjusted EBITDA of £11.7m for March 2022.
The shares look cheap on many levels and may remain so until the debt can be brought down, and there is also the issue of the convertible.
In August 2017 the Group raised £7,293,726 in the form of a convertible loan instrument from BGF to part fund the acquisition of Atomwide. BGF has the right to convert the loan to 1,855,910 shares at a share price of £3.93 per share at any time. The loan instrument can be redeemed by the Company from the third anniversary and bears an interest rate of 7%. 1.8m shares is equivalent to 7.5% of the current issued share count, although the conversion price is over 80% higher than the current share price.
We are of the view that management should focus on organic growth for now to generate cash and reduce debt. The shares should then start to perk up."
Started: Troajan, 16 Nov 2021 15:06
Last post: RedNinja, 16 Nov 2021 19:29
Phil Race comes over well.
Looking at the chart it recovered over 3 months and then back down again.
This share does seem to hold some promise, but no real idea when it will return to some shareholder return.
Downing Strategic Micro Cap half year report comment was :-
AdEPT Technology Group PLC (AdEPT) (6.77% of net assets)
Cost: £3.83m. Value as at 31 August 2021, £3.26m
Background
AdEPT is one of the UK's leading independent providers of
managed services for IT, unified communications, connectivity,
and voice solutions. AdEPT's tailored services are used by
thousands of customers across the UK and are brought together
through the strategic relationships with tier-1 suppliers such as
Openreach, Vodafone, Virgin Media, Avaya, Microsoft, Dell, and
Apple.
AdEPT functions as an aggregator of telecoms services providing a
smoother, integrated service to corporates and government
organisations. We were attracted by the high operational gearing
and recurring revenue streams at appealing margins.
Communications and technology have converged over recent
years and that trend is only set to accelerate into the future, and
AdEPT is well placed to benefit from this trend.
Update to the investment case
? Positive full year results - trading remained resilient despite Covid impacting trading
? Total revenue and gross profit down but recurring and managed services revenue increased
? New enlarged £50m banking facility to support investment in growth
? Cash generation remains strong
? Datrix, a strategically important acquisition, announced post reporting period end
Progress against investment case
AdEPT reported a positive start to the year, with current trading in line with market expectations. Organic
growth delivered improvements in recurring revenues for cloud centric services both ahead of Q1 FY21 and
also ahead of Q4 FY21, a quarter which saw more normal business activity following the disruption caused by
the pandemic.
The pandemic temporarily interrupted the trajectory of the group’s growth, although the board is pleased with
the progress achieved under challenging circumstances. Given its strategic focus on cloud centric strategic
services, organic growth of 9% in this aspect of the business gives confidence. Opportunities for AdEPT have
remained strong, in a vibrant technology market where demand for effective ICT services is at an all-time high,
and are likely to continue to do so.
The momentum gained in Q4 FY21 continued into Q1 FY22, with sales and margins in the new financial year to
date firmly in line with market expectations. Management focus remains on the delivery of strong organic
growth, whilst seeking further opportunities to consolidate the fragmented market, through complementary
acquisitions which generate strong levels of recurring revenue and margin
It does seem sudden, but could just be a large investor selling out...
Stuff doesn’t just drop like this for no reason…
Capital raising going on???
Started: Troajan, 7 Jul 2021 15:54
Last post: mannnan, 7 Jul 2021 15:55
Hi troajan
The market is disaster atm
Started: RedNinja, 9 Mar 2021 19:01
Last post: RedNinja, 9 Mar 2021 19:01
Last post: Kirkyrip, 17 Nov 2020 16:27
I expected them to make alot more of their public sector customers during this period.......take advantage of their desperation. That hasn't shown through in the results.
I've sold out for more commercial operators. I think they will plod along.
I thought the results were pretty reasonable given the Covid-19 crisis and at 216p a share they are not expensive IMO. The company should also come out of this crisis in better shape given its investment in Project Fusion and AdEPT Nebula platform.
However, maybe I should have waited for the stock to finish falling before buying.
CrispFin, Thanks for this, a useful and interesting analysis.
There was an earlier RNS where they disclosed would be 13% ahead of last year on EBITDA basis (https://www.lse.co.uk/rns/ADT/trading-and-coronavirus-update-ridb8laa9df849h.html) so results should be nice.
I think this is cheap at the moment and I have just got in. Key points for me are:
- Nice high margin recurring revenue stream is very attractive
- Good operating cash generation given low levels of capex - this combined with recurring revenue is a winner
- Fishwick's have a large stake and Ian's purchase is a big vote of confidence for me
- Big M&A opportunity in my opinion
Risks though are pretty clear:
- That debt pile needs managing. Its fine at current ratio to earnings but got to keep an eye on that
- Could be a risk of more austerity / government spending cuts given the COVID debt and Adepts increasing wins in public sector
- The convertible bond is potentially worth 7% of the outstanding common shares so that needs to be watched as well depending on what things look like when they convert it from a dilution point of view
I've done a full write up on Adept here - http://crispfinance.com/idea-adept-technology-lon-adt/
I'm a buyer and long term holder at these valuation levels though
I guess IF's purchase started the ball rolling again. I missed the rns until yesterday, I may have topped up with a few more if I had spotted it earlier. I guess about another month before the results, I think that they could be quite good.
could see 250p here quite quickly
Started: draft, 18 Apr 2020 17:20
Last post: draft, 18 Apr 2020 17:20
Started: draft, 7 Apr 2020 11:46
Last post: draft, 7 Apr 2020 11:46
this could be an online winner for online schools learning and remote working
Started: Maccc, 23 Jul 2019 16:32
Last post: Maccc, 23 Jul 2019 16:32
Investor Overview with Chairman Ian Fishwick & CEO Phil Race. A good overview of their service, client base & growth strategy etc:
https://youtu.be/NPfMq74PwaM
Hi all - short results film with FD John Swaite here:
https://youtu.be/-F-9DbI8j0o
More in-depth overview film coming shortly.