1. 1
AdEPT Telecom plc
Interim results & corporate update
for the 6 months ended
30 September 2013
AdEPT Telecom – September 2013 interim results
2. 2
Financial highlights
Trading results and earnings
(7.0%) revenue reduction
Reduced call volumes and prices
6.0% increase in EBITDA to £2.09m
(2012: £1.97m)
20% increase to PBT
PBT increased by £0.1m to £1.0m (2012: £0.9m)
30% increase to PAT
PAT increased by £0.2m to £0.7m (2012: £0.5m)
2.6% increase in EBITDA margin
EBITDA margin increased to 20.6% (2012: 18.0%)
AdEPT Telecom – September 2013 interim results
3. Financial highlights
Cash flow, dividends and acquisitions
3
£1.70m free cash flow (pre-acquisition payments)
After interest free cash flow £1.70m (2012: £1.57m)
45% reduction to finance costs
Finance costs reduced to £0.13m (2012: £0.24m)
Dividends doubled to 1.5p
(2012: 0.75p interim)
AdEPT Telecom – September 2013 interim results
Acquisition of c3,000 customers completed Aug 2013
£1.9m acquisition consideration for Bluebell plus £0.3m Expanse earnout paid
Bank facility renewed and extended
Revolving credit facility extended from £3m to £5m until October 2016
4. 0
500
1,000
1,500
2,000
2,500
Sep 03 Sep 04 Sep 05 Sep 06 Sep 07 Sep 08 Sep 09 Sep 10 Sep 11 Sep 12 Sep 13
482
762
1,204
1,304
1,717
1,881
1,932
1,947
1,972
2,087
EBITDA (£'000s)
Financial highlights
EBITDA growth
4
11th consecutive year of record first half EBITDA
EBITDA increased to £2.09m (2012: £1.97m)
Our business model based on recurring revenue and low capex
has been very resilient throughout the recession
EBITDA up 22% in last 5 years
AdEPT Telecom – September 2013 interim results
5. Financial highlights
Net debt, financing and cash flow
5
£0.5m net debt reduction in last 12 months
Net debt reduced to £3.9m (2012: £4.4m)
EBITDA : Net debt ratio 1.07x
Cash interest cover 13.5x
Operating cash flow : Cash interest paid (2012: 9.5x)
£2.2m cash used to fund Bluebell and ECL acquisitions
AdEPT Telecom – September 2013 interim results
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Mar 08 Jun 08 Mar 09 Mar 10 Mar 11 Mar 12 Sep 12 Mar 13 Sep 13
11,295
12,267
10,843
9,214
7,395
5,339
4,391
3,270
3,892
Net debt (£'000s)
6. 6
DATA NETWORKS
Next generation services
Increased data connectivity and inbound services
6% increase to data connectivity revenue
£1.40m revenue (2012: £1.32m)
Data, mobile and inbound services £2.25m
22.1% of total revenue (2012: 18.4%)
CLOUD BASED CONTACT CENTRE SOLUTIONS
33% increase to cloud-based contact centre and non-
geographic revenue
£0.76m revenue (2012: £0.57m)
AdEPT Telecom – September 2013 interim results
7. 7
Now won 3 Government Frameworks
Growing Public Sector revenues
JANET Framework
– One of a small number of companies approved to
sell data connectivity to UK Colleges and
Universities
ESPO Telecom Framework
– Sole recommended supplier of calls, lines,
broadband, fibre broadband and SIP to Public
Sector and registered charities nationwide
GPS Telephony Framework
– One of 10 companies recommended on the
Government Procurement Service telephony
services framework
AdEPT Telecom – September 2013 interim results
8. AdEPT Telecom plc
Ownership
Chris Fishwick companies* 29.3% Individual
Greenwood Investments 15.3% Family office
Ian Fishwick* 8.1% Individual
Fiske Private Clients 5.3% Private clients
Allan Gauld 4.5% Individual
Octopus 3.9% VCT & EIS
Roger Wilson* 3.6% Individual
Pat Wilson 3.2% Individual
SUB-TOTAL 73.2%
8
• Shareholder and management interests aligned
• 41% of AdEPT is owned by the Directors*
AdEPT Telecom – September 2013 interim results
Director share option exercise
• 872,160 new shares issued in Interim Period (Ian Fishwick 652,160)
– Some of Ian F holding may be sold at some point to fund the exercise and tax obligations
• Shareholdings after recent share option exercise:
9. AdEPT Telecom plc
Contact details
9
Visit us at: www.adept-telecom.co.uk
Roger Wilson
Chairman
Ian Fishwick
Chief Executive
John Swaite
Finance Director
roger.wilson@adept-telecom.co.uk ian.fishwick@adept-telecom.co.uk john.swaite@adept-telecom.co.uk
AdEPT Telecom – September 2013 interim results
11. • The residential and business markets are very different:
Business
competitors
11
Industry Overview
5-10
Residential
competitors
700+
c25700+
Under £2m pa sales Over £20m pa sales
• The business market is highly fragmented with few large
competitors:
AdEPT Telecom – September 2013 interim results
12. What do we do …
• We have a direct & indirect sales force
Own sales team, plus
Two types of business partner:
1. telephone systems sales
2. cost consultants
Business partners earn a % of the recurring revenue
12
60,000 £460k
phone lines at September 2013
Business customers - 97% revenue
Residential customers - 3% revenue
Industry leading sales per employee
Achieved by system automation
All based in Tunbridge Wells
AdEPT Telecom – September 2013 interim results
13. What we do …
13
We are one of the UK’s leading
COMMSintegrators
We supply best of breed products from every major network in the UK, tailored to suit you
AdEPT Telecom – September 2013 interim results
14. What we do …
14
We are one of the UK’s leading
COMMSintegrators
We supply best of breed products from every major network in the UK, tailored to suit you
One bill
One point of contact
for all service issues
Let us decide who is best to supply the
underlying technology
Services supplied
Landline calls Cable & Wireless
Landline rental BT Openreach
Data network Redcentric
Cloud-based inbound TalkTalk Business
AdEPT Telecom – September 2013 interim results
