LONDON (Alliance News) - AdEPT Telecom PLC said Tuesday it is trading ahead of last year and in line with market expectations for the full-year.
In a trading update for the year to March 31, 2014, AdEPT said it anticipates that underlying earnings before interest, taxation, depreciation and amortisation, will be ahead of the previous year and in line with market expectations of an 8% rise year-on-year.
The firm said adjusted pretax profit is expected to be ahead of the prior year and in line with market expectations. Turnover is expected to be in line with the previous year but slightly below market expectations.
AdEPT also said total dividends declared during the year to March 31, 2014 of 3.00p per ordinary share, representing a 100% increase year-on-year from the 1.50 pence paid in 2012.
The company also announced a "partly in-fill" acquisition. AdEPT has signed an agreement to acquire the share capital of Bluecherry Telecom Limited for an initial consideration of GBP1.8 million plus the value of the net assets at completion, estimated to amount to GBP250,000 represented by cash, payable in cash.
Further consideration of between GBP200,000 to GBP750,000 will be payable, also in cash, dependent upon performance of the contracts post-acquisition, said AdEPT. The total consideration will be funded out of AdEPT's existing bank facilities.
Based on recent management accounting information, annualised revenue and EBITDA of Bluecherry is approximately GBP1.2 million and GBP450,000, respectively.
"The business customers of Bluecherry complement the AdEPT portfolio as they are all UK-based fixed-line telecom business customers taking communications products including lines, calls and broadband services," said AdEPT in a statement.
AdEPT said it will announce its final results in early July.
Shares in AdEPT were trading 7.41% lower at 125 pence per share Tuesday morning, one of the biggest fallers on the AIM All Share market.
By Alice Attwood; aliceattwood@alliancenews.com; @AliceAtAlliance
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