7th Apr 2015 08:30
LONDON (Alliance News) - AdEPT Telecom PLC Tuesday said it will increase the dividend it pays to shareholders due to strong cash flow generation and lower levels of borrowing, while it expects a largely positive performance against market expectations when it reports annual results.
AdEPT Telecom, which provides telecom services, said it will increase its final dividend to 2.50 pence from 1.50p for the year ended March 31.
Together with its 2.25p interim dividend, the company's dividend for its full financial year will increase to 4.75p from 3.00p.
The company said its expects its underlying earnings before interest, tax, depreciation and amortisation to be in line with the 14% year-on-year increase it said the market expects. In addition, pretax profit adjusted for amortisation and share option costs also is expected to be in line with market consensus. The company said a GBP1.4 million reduction in net debt to GBP1.6 million was GBP1.1 million better than the market had been expecting.
Although turnover is expected to be "nearly" 6% ahead of the prior financial year, the company guided that the final number will be "slightly below" market expectations.
AdEPT's underlying EBITDA increased to GBP4.0 million in the year ended March 31, 2014, from GBP3.7 million in the prior year, while pretax profit not adjusted for amortisation and share option costs increased to GBP1.8 million from GBP1.6 million. Revenue slipped to GBP20.9 million from GBP21.0 million.
The company said it expects to report annual results in early July.
AdEPT shares were up 2.1% at 148.00 pence on Tuesday morning.
By Samuel Agini; [email protected]; @samuelagini
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