12th Nov 2019 09:39
(Alliance News) - Managed IT services provider AdEPT Technology Group PLC on Tuesday said it delivered a first half revenue rise, helped by a trio contributions of fresh acquisitions.
In the six months to September 30, revenue climbed 26% to GBP30.8 million from GBP24.4 million.
A rise in costs however led to a 6.3% pretax profit decline to GBP2.4 million from GBP2.6 million last year.
Amortisation costs grew by 44% to GBP2.9 million from GBP2.0 million, depreciation expenses more than doubled to GBP681,000 from GBP229,000 and AdEPT booked GBP236,000 in restructuring fees, against none last year.
AdEPT said: "Total revenue in the period increased by 26% to GBP30.8 million and includes the six-month revenue contribution from Advanced Computer Systems Group Ltd following the acquisition in April 2019; and a full six-month contribution from Shift F7 Ltd and ETS Communications Holdings Ltd."
The company sealed the acquisition of Surrey-based peer Shift F7 in August 2018 for an initial GBP5.0 million, before snapping-up ETS, which is based in West Yorkshire, for GBP2.5 million.
In April, it added ACS to its books, parting with an initial GBP5.2 million.
AdEPT raised its interim dividend by 4.1% to 5.10 pence per share from 4.9p last year.
Chair Ian Fishwick said: "I am pleased to see the positive results of our efforts, as trading continues to be in line with management's expectations. We will continue to pursue our strategy to identify earnings-enhancing acquisitions whilst retaining the ability to continue with our progressive dividend."
AdEPT shares were 5.8% lower at 348.55 pence each in London on Tuesday morning.
By Eric Cunha; [email protected]
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