AdEPT Technology Group drops as profits tumble

AIM-listed IT services provider AdEPT Technology Group (LON:ADT) has seen its shares fall by 5.61% to 349.24p (as of 12:15 GMT) as pre-tax profits for the six months ended 30th September dropped 32.7%. Revenues rose by 26%, but EBITDA margins fell by 1%.

Chairman Ian Fishwick commented: “The Group has continued with its transformation into a managed service provider for unified communications and IT whilst bringing the Group closer together under the ‘One AdEPT’ initiative christened ‘Project Fusion’. I am delighted to see the organic revenue growth that has been achieved alongside successfully continuing with our acquisitive growth strategy. The results for the period demonstrate the strength of our capex-light highly cash generative business model which is focused on high levels of recurring revenue.

“I am pleased to see the positive results of our efforts, as trading continues to be in line with management’s expectations. We have a fully supportive investor base and funding partners, and in this converging and fragmented marketplace we will continue to pursue our strategy to identify earnings-enhancing acquisitions whilst retaining the ability to continue with our progressive dividend“.