25 Sep 2008 11:59
AdEPT Telecom plc
("AdEPT Telecom" or the "Company")
AGM Statement
25 September 2008
AdEPT Telecom is pleased to announce that at the Annual General Meeting ("AGM") of the Company held at 11.00am today, the resolutions proposed, as set out in the notice of AGM dated 25 August 2008, were duly passed.
Roger Wilson, Chairman of AdEPT Telecom plc, commenting at the Company's AGM said:
"Following the successful integration of Telecom Direct Limited ("Telecom Direct"), the Directors are confident that sales of the combined group in the 6 months to September 2008 will be well ahead of the same period last year. The combination of this successful integration with our increased focus on organic growth in sales and customer retention, announced in our latest Annual Report and Accounts, means that underlying EBITA will also be ahead in the 6 months to September 2008.
The integration of Telecom Direct, acquired in December 2007, has been completed on schedule, and delivered the planned costs savings as expected. However, revenues generated by the business are below expectations. The terms agreed in respect of the purchase price for Telecom Direct are contingent on the results of the business. We will therefore be paying less for Telecom Direct than we originally budgeted for. In the first half year all remaining earn-out payments have been made.
Customer churn remains under control, at levels slightly below industry averages. New sales are strong, and we now have 13 of the Regional Probation Services as clients. We are continuing to widen our product range and have reached agreements with both Cable and Wireless and Kingston Communications to sell their complete range of data products. We are now well placed to address every size of data requirement from a single broadband link up to nationwide wide area networks.
Given the smaller size of Telecom Direct our sales and underlying EBITA will be lower than the original forecast issued by analysts in December 2007 when the acquisition was first announced. The business continues to be highly cash generative and our future prospects continue to be good."
Enquiries:
AdEPT Telecom:
Roger Wilson 07786111535 Chairman
Tim Holland 01892 550236 Finance Director
Strand Partners:
Simon Raggett 020 7409 3494
David Altberg 020 7409 3494