Featured on Investors' Champion4 Feb 2022 07:34
Decent coverage yesterday on Investors' Champion as part of their usual monthly review of new issues:
Https://www.investorschampion.com/channel/blog/aim-new-arrivals-january-2022
"There was only one new arrival, which we cover here.
Facilities by ADF (AIM:ADF) is a provider of premium serviced production facilities to the UK film and high-end television industry.
ADF hires out its facilities to productions throughout the UK and Europe, providing its services to some of the world's largest traditional and on-demand content production companies. It is the only high-volume facilities provider in Europe that is approved by albert, an organisation that measures and assesses the environmental impact of businesses in the film and television industry.
ADF was established in 1992 in Bridgend, Wales, and has grown to the point where it now services productions with its fleet of over 500 trailers and vehicles, providing services to the largest global production companies including Netflix, Sky, BBC, ITV, Disney, HBO, and Apple, amongst others. It has worked on some of the UK’s most popular television series, such as The Crown, Gangs of London and Peaky Blinders.
ADF’s production fleet is made up of premium mobile make-up, costume and artiste trailers, production offices, mobile bathrooms (known as honey wagons), diners, school rooms and technical vehicles.
The industry in which it operates has experienced significant growth in recent years with additional demand driven by a material rise in the consumption of film and HETV content via streaming platforms such as Netflix, Disney and Amazon Prime.
Major US streaming companies have now set up permanent bases in the UK, which is now Netflix’s third largest operation after the USA and Canada.
With increased demand for its services, ADF’s fleet capacity is already almost fully booked for the 2022 calendar year.
The 2020 financial year was severely impact by the pandemic with revenue falling from £15.9m in 2019 to only £8.0m in 2020, although the group still generated positive EBITDA of £0.83m compared to £3.34m in 2019. For the six months ending 30 June 2021 revenue recovered strongly to £11.5m with EBITDA of £4.17m. It has ambitions to grow its business to £100m of revenue.
On AIM admission, ADF raised £13m of new money and £3.39m for selling shareholders at a price of 50 pence per share, with the market capitalisation on admission £37.7m. Despite the challenging market, the shares have attracted plenty of buying activity and are currently 40% up on the admission price.
We wish it great success on AIM"
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