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AdEPT's results to be slightly ahead of market expectations

As a result of strong free cash flow and trading results, the board is once again cranking up the dividend, with the final dividend rising to 4.5p from 4p last year
AdEPT Telecom team
AdEPT continues to generate consistently strong free cash flow conversion from EBITDA with a capital asset light model

AdEPT Telecom PLC (LON:ADT) said underlying earnings in the financial year just ended will be slightly ahead of market expectations.

The information technology, communications and connectivity specialist said that when all of the numbers for the year to 31 March 2018, are totted up, it expects underlying earnings (EBITDA) will have risen 23% on the previous year, which is slightly ahead of the market consensus forecast.

READ: AdEPT Telecom taking big strides as consolidator

Turnover, up 29% or so year-on-year, is also expected to be ahead of market expectations.

AdEPT continued its tradition of meaty dividend rises by announcing its intention to pay a final dividend for the year to 31 March 2018, of 4.5p, up from 4p the year before.

The total dividend for the year rose 13% year-on-year to 8.75p, well ahead of the consensus forecast of 8p.

The deferred consideration period in relation to AdEPT’s acquisition of Our IT Department Limited ended on 31 January 2018 and the results for the 12 month post-acquisition period exceeded the maximum consideration threshold. The deferred consideration for Our IT Department Limited of £3.65mln will be paid in early April 2018, AdEPT said.

Net senior debt at the end of March stood at £18.05mln, which was lower than the market had been expecting largely as a result of the timing of the deferred consideration in relation to the acquisition of Our IT Department, combined with better-than-expected earnings.

"AdEPT continues to generate consistently strong results, driving growth both organically and through acquisitions, while providing investors a dividend yield of 2.9%," noted broker, Northland Capital Partners.

Shares in AdEPT were up 3.1% in early deals on Thursday.


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The telecommunications firm provides fixed line calls, line rental, telephony, and broadband to business and residential customers

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