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Stuff doesn’t just drop like this for no reason…
Capital raising going on???
It does seem sudden, but could just be a large investor selling out...
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