Adept4 plc (AD4) the AIM quoted provider of IT as a Service is pleased to announce final results for the year ended
30 September 2018.
Financial Summary
- Revenue in line with last year at £10.2m (FY17: £10.3m) with 70% from recurring customer base, demonstrating strength of customer relationships
- Gross profit of £5.7m (FY17: £6.2m) representing gross profit margin of 56% (FY17: 60%)
- Trading Group EBITDA1 of £0.6m (FY17: £1.2m)
- Loss after tax of £3.8m (FY17: £0.6m) after significant non-recurring items, including an impairment charge of £2.6m against goodwill
- Net debt2 at 30 September 2018 of £2.7m (FY17: £2.0m)
Operational Summary
- Successful settlement of legal case against vendors of Adept4 Managed IT Limited in the sum of £1.6m, of which £0.6m was receivable in cash
- Strengthening of management team leading to improved technical and service levels
- Increased utilisation of cloud technology by customers resulting in a reduced requirement for remote based and field workers leading to a reduction in the operating cost base towards the end of the year
- Post-year end decision to focus on existing customers with less emphasis on new business acquisition
- Further cost savings identified and being implemented to protect the cash reserves whilst the Board assesses strategic options
Simon Duckworth, Chairman of Adept4, commented:
“Despite it being a challenging year for the business, we have made progress against each of our key areas of strategic development including the strengthening of our senior operational management team and development of our technology partnerships. We have improved our levels of service delivery leading to high levels of customer satisfaction, though the investment made in the new sales team has not yet delivered the results we had hoped for. Maintaining our strong relationships with existing customers, together with protecting the Group’s cash balances and shareholder value are our key objectives while we explore the strategic options for the Group.”
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