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AdEPT Telecom buyback highlights strong cash generations says broker

Last updated: 00:38 20 Dec 2014 AEDT, First published: 01:38 20 Dec 2014 AEDT

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The company, spun off from parent Barrick, which rejected the offer of offloading it earlier this year, operates three of its mines in Tanzania and saw a fourth mine closed down earlier in the year, a casualty of commodity headwinds that rendered it uneconomic.

AdEPT Telecom’s (LON:ADT) share buyback plans highlight its low capex business model and strong working capital management, says broker Northland.

The telecoms services provider is to buy back up to 15% of its shares in issue through the scheme.

Northland added that AdEPT’s cash generation has been used already to reduce net debt, fund acquisitions and raise the dividend, though it expects the buybacks will be a very gradual process that will not impact the growth strategy.

Buy with a 175p price target remains the broker’s view.

Shares today were trading at 145.9p, up 2%.

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