Adept Technology Share Discussion Threads

[tightfist] 21/5/2019 14:52

FYI, Ian Fishwick of ADT shared the presentation with Downing at Mello last Thursday. I guess it was a bit of collaborative marketing that did neither of them any harm!

[soundbuy] 21/5/2019 13:20

Fairly illiquid......perhaps a trade or two above NMS yet to print?

[gargleblaster] 21/5/2019 12:27

Nice move today. Sentiment seems to have improved since the extension of the bank facility - they clearly have every confidence in ADT. anyone know why this may have jumped today?

[glasshalfull] 05/5/2019 11:18

Downing Strategic Micro Cap investment trust released their FY results on Friday & had this positive update on ADT




AdEPT Technology Group PLC (AdEPT) (8.76% of net assets)

Cost: £3.63m. Value as at 28 February 2019, £3.63m.

Update to the investment case

Good:

· Interim results released in November 2018 were positive, with EBITDA up 10.7% year-on-year

· November 2018 acquisition of ETS Communications

· Phil Race appointed as new CEO. Incumbent CEO, Ian Fishwick, moves to chairman

· Extension of bank facility by £5 million to a total of £35 million

Progress against investment case

This is a quality business with attractive recurring revenue. Our investment case was predicated on the ability of management to acquire businesses at a good price, and the migration to become a managed service business.

AdEPT acquired two businesses in the second half of 2018. ETS Communications is the most recent and brings with it a complementary skill set, a robust customer book of over 200 GP surgeries, and is expected to be approximately 5% accretive to group revenue. The managed services division attracts high quality, recurring revenues, and now accounts for 74% of group turnover.

We have also seen Phil Race appointed to CEO as of 1 January 2019 and Ian Fishwick move into the chairman role. We see this as a positive step for the business that will allow Ian Fishwick to focus on delivering the long-term strategy with the reassurance that operations are being overseen by an experienced leader of technology businesses as CEO, and proven Finance Director in John Swaithe.

-

I have a small holding in ADT which looks v good value as it’s trading on a FCF yield of c.10%. Pleased that focus is now turning to driving organic growth following the multiple acquisitions that provided
ADT with a great base & strong product offering...& now provides them the opportunity to drive sales (cross selling) throughout their customer base.

Kind regards,
GHF

[soundbuy] 03/5/2019 09:35

Picked up from Shelley Rosen perhaps??

(other holding RNS)

[someuwin] 03/5/2019 07:10

Christopher Kingsman increases holding to 22%

[someuwin] 29/4/2019 09:25

Picked up a few - looks like a solid stock.

[robsy2] 26/4/2019 10:30

Looks good to me , typical type of investment that thay have been making over the years. earnings enhancing , easily intergrated and offering more scope for further cross selling etc . Great . Price action here is very dull.
R2

[aishah] 26/4/2019 09:44

Acquisition highlights

-- Initial consideration of GBP5.24 million less the net debt of ACS Group at 31 March 2019
-- Expected to be earnings enhancing from completion
-- AdEPT group revenue run rate anticipated to increase by approximately 9%
-- Highly complementary IT services product set with SAGE expertise that can be cross sold into AdEPT clients

-- ACS Group further enhances the AdEPT education strategy with approximately 200 schools and academy trust customers

-- Highly experienced vendors to remain with ACS Group

[blusteradjuster] 03/4/2019 10:54

Inline trading statement.

Isn’t that 10 years of uninterrupted growth?

If only all AIM shares were this “boring”..

[speedsgh] 19/3/2019 09:04

Looks like a potentially good point to buy/add. Share price currently bottom of 5yr rising trend channel.

Consensus forecast for dividend in FY19 appears to be 9.50p. However, based on 15% increase in the interim payment which was covered 3.0x, I am pencilling in 10.00p which gives a 3% forward yield.

[gargleblaster] 07/2/2019 04:14

Fwd PE of 10.9 seems absurdly cheap.

[wanttowin] 06/2/2019 15:42

Market doesn't seem to like the news of Kingsman leaving.

[robsy2] 15/1/2019 11:47

I had to pay 360p for stock last week. This leaves with instant losses of 6% , so yes it's a fairly horrible spread.

[robsy2] 15/1/2019 11:46

Morning All

I was introduced to AdEPT Technology (ADT) in the Mello conference in London last November and I liked what I saw.

This is my reasoning . I write this stuff to get my ideas clear before I buy , it also reminds me why I bought the sharees in the first place , useful if things don't pan out as expected...

I pass it on in the spirit of sharing and also to invite comment.

So , just to be clear , this isn't a recomendation, it's just an explanation of why i bought the shares. If there are any fatal flaws in the reasoning , I'd be pleased to hear them.


--------------------------------------------------------------------------------
IMHO,This looks like good business. ADT is a well- regarded, multi- award winning business and one of only three companies quoted on AIM that has increased their earnings for each of the last 10 consecutive years (out of a total of 941 companies).

The business has evolved from their original work based around cabling and getting the fixed-lines telephone systems working, to the point now where they design, install and maintain communications systems to many organisations including 100 UK councils, NH Trusts and other government bodies.

Apparently 79% (and rising) of their business income comes from managed services, so income visibility is very high. The business model is stable, profitable with good returns on capital, strong cash-flow and they have a developed a formula for growing the business.

They grow organically as they add services to their client offerings but they also grow through acquisitions. Having made 26 acquisitions over the years they are obviously pretty good at integrating them into the group. This is a big plus for me because a lot of highly acquisitive businesses run into problems with this.

They have a floating line of credit, ready to finance the acquisitions as they are identified. Acquiring other smaller businesses allows them to eliminate competition, broaden their product range and operational ability, and capture clients and also decent personnel to add to their skill-set.

The management team come over well. The main man, Ian Fishwick is impressive. He is an industry veteran, multi award-winning executive who is passionate, hands-on, smart and driven: You get the impression that he runs a very tight ship indeed.

The whole organisation oozes professionalism. They are small, committed and demonstrate an impressive attention to detail. The rigour, control and focus are evident. The website also has a good feel.

He says he has built the company up by closely focussing on the “here and now” operationally, while keeping a keen eye on the future.

This means, weekly sales meetings, and tight control of costs and delivery of objectives on-time and within budget.

His stamp and feel is all over their company. He clearly keeps his 248 employees on their toes, but happy as well. He says they rarely lose clients or members of staff.

It all feels good and the focus certainly shows up in the figures with consistently high returns on capital, (well above industry norms) and with no signs of slippage.

It is worth noting that Ian Fishwick, founder and executive chairman responsible for strategic direction and acquisitions, has a lot of his wealth invested in the business.

He, his family and the directors are the principal shareholders and own 43% of the shares. They will want to keep doing well.

They see lots of opportunity to grow and are well placed to get more business. They are very unfazed by BREXIT etc and see few obstructions to moving forwards.

The more businesses they acquire, the less competition they have and the more customers they capture. This makes the on-selling easier, as their customer base and offering broadens. Their company specific expertise helps them get more business and their scale means that they get the best back-up and pricing etc from the companies that produce all the kit that they specify, combine and assemble into systems.

They also make the point that the more services they add and sell, the more difficult it is for clients to leave them, even if they wanted to, which he assures us they don’t.

He also says that he has no problem finding customers for their services or target companies to buy. There are millions of potential customers, they have just 15000. They see a substantial opportunity to grow the business.

By specialising in sectors like schools, councils, doctor’s surgeries, schools, hospitals, business centres etc. Adept has built- up industry-specific expertise and also a lot of high level contacts in government. They are well- placed to add more similar clients and further grow the business.

It all looks like an ever more virtuous circle. The historical figures show the consistency of performance. The company has a good formula and an excellent track record of delivery. We are betting that they can keep up the good work.

The figures look good and the company has a StockRank of 91* which is very high indeed.

*A measure of quality, value and momentum- QVM.

It is on a fairly reasonable rating with the PER of 11.3 on 2019 expected earnings, earnings that they are certain they are going to achieve. It yields 2.75%, lower than I would like, but it’s a progressive dividend policy and the reality is that they re-invest the bulk of their earnings and they invest well.

As I said above, Ian Fishwick, his family and the directors and employees own 43% of the shares. They will all want to keep doing well. I think we should follow them.

CONCLUSION

They have an enviable track record and a proven ability to grow their business and maintain margins.

They are disciplined, focussed and efficient and they have a very well worked strategy.

Their tremendous track record deserves respect.

The offer high earnings visibility and a systematic way of growing their business.

They are confident of their ability to move forwards. Mr Fishwick describes the company as a “cash machine”. The evidence to date supports his claim.

Both the marketplace they serve and the technology they deploy will continue to evolve but they have shown themselves to be able to go with the flow of change and re-enforce their position as trusted technology providers.

I have a target price of 500p in 12-18 months for an upside of 40-50% including dividends.

[tomps2] 02/12/2018 13:38

AdEPT presentation by CEO, FD and Group MD at Mello London, last week.



Introduction, and opportunity to win a bottle of champagne! -00:22
ADT key fundamentals - 01:45
Strategy: Telecoms – unified comms – IT & hosting – 04:35
ADT by numbers - 10:13
KPIs: Product revenue - 12:33
KPIs: Customer sector – 14:14
Partners - 16:36
Accreditations & awards - 17:31
Interim results highlights (Sept 18) - 18:17
Latest update – acquisitions - 25:13
Q&A - 27:11

[gargleblaster] 08/11/2018 09:54

Another bolt-on which the market likes - almost 10% up!

[davidosh] 03/10/2018 14:06

Just to let you all know that Adept Technology Group will be presenting at our very big investor event in Chiswick W4 next month on Tuesday 27th November. MelloLondon is a two day event and starts on Monday 26th November. You can find out more here...



There will be 60 quality companies exhibiting and presenting plus some very well known investors, entrepreneurs, fund managers and market commentators providing excellent keynote talks on a range of investment subjects. A number of investment workshops will be available each day and a ShareSoc MasterClass on the final day.

[blusteradjuster] 02/10/2018 10:26

Do we need a new thread to go with the new company name?

[malcontent] 27/9/2018 20:44

400 pence per share

well done Adept

[gargleblaster] 27/9/2018 18:33

Just realised that it was ex-div today - so worth an extra 4.5p on top of the rise today. Nice!

[blusteradjuster] 27/9/2018 10:55

Yes, perhaps Cantor Fitzgerald are earning their PR-purse.