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AGM Sep 10 Trading update

RNS Number : 8957T

AdEPT Telecom plc

06 October 2010


AdEPT Telecom Plc (“AdEPT” or the “Company”)

Trading Update

AdEPT Telecom plc today issues a trading update for the 6 months to 30 September 2010 ahead of interim results which are expected to be announced in early November 2010.

The Company is pleased to report that despite the challenging economic conditions in the UK over the past 12 months, underlying EBITDA will be in line with the 2009 comparative period and in line with market expectations.  Net debt at £8.2m and revenue of approximately £12m also meets market expectations.

A key strength of AdEPT is its consistent and proven ability to generate strong operational cash flow.  As a consequence of the Company’s focus on underlying profitability and cash conversion, in the year to 30 September 2010 net debt has been reduced by a further £2m from £10.2m at 30 September 2009 to £8.2m at 30 September 2010.

AdEPT is increasingly seen as one of the UK’s leading suppliers to multi-site customers and this has been further demonstrated by the following notable contract wins in the last 6 months:

  • a new 36 month contract win to supply a national electronic games operator with a voice and data network of 450 sites with a contract value estimated in excess of £800,000. The contract involves the deployment of a nationwide data network with Ethernet central connectivity and a complex inbound and outbound solution based on our 21st Century Network feature set.
  • a new 36 month contract to supply a nationwide chain of c750 pubs with Wi-Fi connectivity, with an estimated contract value of over £700,000.
  • a new contract to supply the leading publisher of journals and magazines to the public sector. This 24 month contract has an estimated contract value in excess of £200,000.
  • a new 36 month contract to supply 50 shops of a nationwide charity with a multi-site multi-product solution.
  • a framework agreement with one of the UK’s largest data network providers: the Joint Academic Network (JANET). AdEPT is now one of only 20 companies authorised to sell data products to UK universities and colleges.

Our position as an independent, best of breed supplier means that we can take advantage of the roll-out of 21st century networks by a range of carriers in the UK. We continue to expand our product portfolio particularly in the data and VoIP arenas.

  • We have added data services such as Ethernet high speed access (up to 1Gigabit speeds) and MPLS networks.
  • We have signed a supply agreement with BT Wholesale to sell what we believe are the most advanced business-grade VoIP services in the UK. Hosted IP for smaller sites and SIP trunks for larger sites are integrated into a single platform managed via a web portal. The second half year will see the start of customer trials.

An emphasis by the Company on product cross-selling has seen further improvements, with customers taking 3 or more products accounting for 26% of September 2010 billed revenue (March 2010: 21%).

The Company’s focus on larger customers has proven beneficial with the Premier Customer division, comprising the 200 largest customers, now accounting for more than 36% of total revenue (March 2010: 30%).  As a consequence of our focus on larger customers, the Company has seen a significant reduction in underlying operating costs in the 6 months ended 30 September 2010 with operating costs falling to 21% of revenue (March 2010: 23%).

Roger Wilson, Non-Executive Chairman of AdEPT, said:  “The Company has rightly focused on strong cash flow generation and profitability in a tough economic environment which has resulted in a significant reduction of net debt of £2m in the last 12 months.  These remain key priorities for the Company for the coming year.”

For more information please contact:

AdEPT Telecom PlcRoger Wilson, ChairmanIan Fishwick, Chief ExecutiveJohn Swaite, Finance Director


 07786 111 53501892 550 22501892 550 243


Astaire Securities PlcShane Gallwey  020 7492 4750

About AdEPT Telecom plc:

AdEPT Telecom plc is one of the UK’s leading independent providers of voice and data telecommunications solutions.  The Company provides fixed line calls, line rental, mobile and data connectivity solutions to thousands of residential and business customers across the UK.  AdEPT Telecom has strategic relationships with tier-1 suppliers such as BT, Cable & Wireless and Carphone Warehouse. The Company employs 54 members of staff at its offices in Tunbridge Wells, Kent.

AdEPT Telecom is listed on the London Stock Exchange (Ticker: ADT).  For further information please visit:
This information is provided by RNS The company news service from the London Stock Exchange