ADF Facilities Regulatory News (ADF)

3 August 2023

Facilities by ADF plc

("ADF", the "Company" or the "Group")

Half year trading update and Notice of Results

Facilities by ADF, the leading provider of premium serviced production facilities to the UK film and high-end television industry, today provides an update on trading for the six-month period ended 30 June 2023 ("H1-FY23").

ADF delivered a strong financial performance in H1-FY23, with high levels of fleet utilisation following on from a solid finish to the financial year ended 31 December 2022. As a result, the Company currently expects to report H1-FY23 unaudited revenues of £21.8 million and unaudited adjusted EBITDA of £5.8 million.

The Group remains strongly positioned in its markets and the Board remains confident in the Company's future prospects with ADF remaining focused on investing in its offering and people to deliver its growth strategy, whilst also targeting further high-quality complementary acquisitions.

Much has been publicised in the media about USA Writers (Writers Guild of America (WAG)) and Actors (Screen Actors Guild - American Federation of Television and Radio Artists (SAG-AFTR)) strikes which have been impacting productions around the globe. As the strikes have drawn on, several film and TV productions in the UK, on which ADF is currently engaged, have seen stoppages or delays to productions that were scheduled to start filming in autumn 2023, having now been pushed into early 2024 commencement.

Notwithstanding the above effects on productions affected by the USA strikes, revenues from the Group's unaffected UK productions and pipeline are expected to generate revenues for the full year ending 31 December 2023 of between £35 million and £40 million, assuming there is no resolution to the strikes in the current financial year. ADF continues to assess the impact on its planned work programme for the remainder of the financial year in conjunction with its production company contacts. Any alleviation of the prevailing strike action will provide the potential for further upside in the current financial year.

The Company expects to provide a further update at the time of its H1-FY23 interim results which will be published in mid-September 2023.

As the industrial action normalises, the Board is confident that there will be significant levels of pent-up demand for film and high-end television productions, akin to that seen post the initial onset of the COVID-19 pandemic, and that the Group is well placed to benefit given its market leading position.

Marsden Proctor, CEO, said:

"The Group delivered a strong first half, building on momentum from the prior year. Whilst the Writers (WAG) and Actors (SAG-AFTR) strike is causing a short-term impact across our entire industry, as a Board, we are confident the Group is in a strong position to capitalise once previous productions level resume, and therefore remain very confident in the long-term success of ADF."

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This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company take responsibility for this announcement.