15th Nov 2016 10:46
LONDON (Alliance News) - AdEPT Telecom PLC Tuesday reported a rise in pretax profit for its first half and upped its interim dividend, as revenue was bolstered by its acquisition of Comms Group UK Ltd in May.
For the half year to the end of September AdEPT reported a pretax profit of GBP1.5 million, up from GBP1.2 million the previous year, on revenue of GBP16.5 million, up from GBP13.9 million.
The communications and managed service provider proposed an interim dividend of 3.75 pence for the half year, up 25% from the 3.00p it paid the previous year.
AdEPT attributed its rise in revenue to a five month contribution from communications firm Comms Group. Meanwhile, AdEPT continued to win a number of new contracts with councils and other public sector bodies in the half.
The company said that, since the half year end, it has completed its acquisition of CAT Communications which is expected to add to earnings. AdEPT acquired CAT at the beginning of November for an initial GBP1.1 million, less CAT's net debt at completion. It will pay a further contingent consideration of between GBP200,000 and GBP950,000 dependent on CAT's future performance.
"We continue to be highly cash generative with adequate debt facilities in place to enable the board to continue to identify earnings-enhancing acquisitions whilst retaining scope for a progressive dividend policy," the company said.
Shares in AdEPT were up 10% at 264.00 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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