Adept has completed a further acquisition, this time Abingdon based Telecom Direct, cut a £30m NGN migration deal with Opal Telecom – a part of the Carphone Warehouse Group and announced their preliminary results for the 6 months ended 30 September 2007.
The financial reporting highlights include: During this period of transition generated total revenues of £9.27 million (2006: £9.47 million), gross margins improved to 38.8% (2006: 38.3%) and maintained EBITA at £1.3 million (2006: £1.3 million).
Operationally Adept has continued their increase in the revenue from business customers now 91% of total revenue (2006: 86%) and the company noted that line rental, which is a minimum 12 month contract, now represents 29% of revenue (2006; 21%). During the reported period Adept also completed the acquisition of 5,000 business customers from Fizz Telecom.
Since the half-year end Adept has also announced today a three year agreement with The Carphone Warehouse Group (CPW) to migrate Adept customers onto the 21st Century Network of Opal Telecom, the B2B division of CPW).
The company has also announced today the acquisition of Telecom Direct Limited for an estimated £6.4 million. Telecom Direct generated revenues of £13 million for the 12 months to March 2007. The acquisition will substantially increase Group revenues by over 60% and position AdEPT as one of the UK's largest fixed line resellers.
Commenting on these results, Chairman Roger Wilson said: "This is a creditable financial performance in what has been a period of transition for the business.
We intentionally reduced the pace of our acquisition programme and have successfully reduced churn and increased organic sales, which is reflected by our financial performance against tough comparators in the previous period. AdEPT is now once again in a strong position to accelerate the growth of the business.
The three year agreement with CPW will facilitate the introduction of a range of new converged products and with the acquisition of Telecom Direct, the Company has significantly expanded the size of the business. We are currently trading in line with expectations and as a result we are confident about the outlook for the business."