sep 13-interim-results-a dept

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AdEPT Telecom plc Interim results & corporate update for the 6 months ended

30 September 2013

AdEPT Telecom – September 2013 interim results

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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%)


Financial highlights Cash flow, dividends and acquisitions

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£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)


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

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

48

2

76

2

1,2

04

1,3

04

1,7

17

1,8

81

1,9

32

1,9

47

1,9

72

2,0

87

EBITDA (£'000s)

Financial highlights EBITDA growth

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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


Financial highlights Net debt, financing and cash flow

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£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


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

,29

5

12

,26

7

10

,84

3 9,2

14 7

,39

5 5,3

39

4,3

91

3,2

70

3,8

92

Net debt (£'000s)

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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)


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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 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%

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• Shareholder and management interests aligned

• 41% of AdEPT is owned by the Directors*


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:

AdEPT Telecom plc Contact details

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Visit us at: www.adept-telecom.co.uk

Roger Wilson Chairman

Ian Fishwick Chief Executive

John Swaite Finance Director

[email protected] [email protected] [email protected]


AdEPT Telecom plc Annexes

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Introduction to AdEPT Telecom

for new investors


• The residential and business markets are very different:

Business

competitors

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Industry Overview

5-10

Residential

competitors

700+

c25 700+

Under £2m pa sales Over £20m pa sales

• The business market is highly fragmented with few large competitors:


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

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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


What we do …

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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


What we do …

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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


sep 13-interim-results-a dept

Investor Relations

p interim adept telecom

years adept telecom

adept telecom plc annexes

new investors adept

ecl acquisitions adept

tunbridge wells adept

revenue reduction

half ebitda ebitda