Adept Technology Share Discussion Threads

[tomboyb] 08/2/2023 15:54

wow! -

2 cash offers today 7dig as well - !

[irenekent] 08/2/2023 15:29

What happened to 250p? Any chance of a counter offer - someone else must be interested in making a better offer, even if it only means adding in the dividend which will be cancelled.

[maddox] 08/2/2023 15:02

Recommended cash offer 201p

[value viper] 07/2/2023 11:26

More sells going through but 2 remain on the bid ..... holding quite well in spite

[red ninja] 03/2/2023 15:56

Well Adept are supposedly cheap when compared too other companies in a similar if not identical space.

However, no sign of a buyer who wants to pay us £2.50+ a share yet.

Still one day maybe it will happen...

[value viper] 03/2/2023 15:51

If we don't receive an approach before lol

[red ninja] 03/2/2023 15:33

It's an award winning business in growth areas.

The deleveraging should help to attract more buyers here.

However, not much news flow. I believe based on previous years we should get a trading update in early April.

[value viper] 03/2/2023 15:14

A few larger sales today I see but price holding firm which is interesting
Debt or no debt I feel this gotta be cheap myself but wtfdik
So so quiet in general

[red ninja] 29/1/2023 21:09

If Adept Does manage to pay off something around £6-10 million of senior debt over the next 18 months that may start a re-rating.

Personally, I'd like them to continue taking debt downward, but not sure how far they are prepared to take the deleveraging.

As you say no management buying at these depressed levels is not encouraging.

Yes, I'm liking the FY dividend of 5p, but I am thinking they are effectively borrowing the money to pay it and paying interest on it.

I believe the institutions have been encouraging Adept to deleverage, but I guess it depends how stubborn the board is.

I would hope for a pickup in growth, but given the recession I am not sure how much if any growth we can hope for.

Judith McKenzie (Downing) has said she would expect a price of £2.50 per share if it was to be taken over.

[red ninja] 29/1/2023 21:09

Chip demand is down see :-



Thus hopefully those deliveries that Adept could not make because of supply chain issues should now be resolved.

[value viper] 29/1/2023 17:23

Hi Red - I’ve started a new 2023 ADT thread
Post there
Give this all the luck it needs

[red ninja] 29/1/2023 11:49

If Adept Does manage to pay off something around £6-10 million of senior debt over the next 18 months that may start a re-rating.

Personally, I'd like them to continue taking debt downward, but not sure how far they are prepared to take the deleveraging.

As you say no management buying at these depressed levels is not encouraging.

Yes, I'm liking the FY dividend of 5p, but I am thinking they are effectively borrowing the money to pay it and paying interest on it.

I believe the institutions have been encouraging Adept to deleverage, but I guess it depends how stubborn the board is.

I would hope for a pickup in growth, but given the recession I am not sure how much if any growth we can hope for.

Judith McKenzie (Downing) has said she would expect a price of £2.50 per share if it was to be taken over.

[red ninja] 29/1/2023 11:36

Chip demand is down see :-



Thus hopefully those deliveries that Adept could not make because of supply chain issues should now be resolved.

[value viper] 28/1/2023 21:43

A new thread for hopefully a new lease of life for the share price.

[value viper] 28/1/2023 21:42

With shares languishing near all time lows, management now need to step up and drive some shareholder value.
Debt or no debt, the valuation is pitifully low.
Surprised institutions are not getting vocal.
Good luck investors - new and existing.

[value viper] 28/1/2023 21:27

Maybe time for a new thread

[value viper] 28/1/2023 21:19

So so quiet here - everyone just sitting still
They post bits I see on social media
Still think is a sitting duck
Was 4 pounds rightly or wrongly
Little surprised the institutions are not rattling the cage for action
verging on what is the point of a listing
still zero director market buying
loaded with options does not wash with the price down here imv
too comfortable

[red ninja] 16/12/2022 12:39

Still the price goes down, hopefully this will encourage the board to put some real effort into deleveraging the balance sheet.

[red ninja] 16/12/2022 12:20

Downing Strategic Micro Cap I.T. November Factsheet comment :-

"AdEPT (+4.8%) reported flat revenue and earnings and a challenging outlook over the short-term, affected by ongoing equipment supply shortages. However, the
business is now in a great position to begin de-leveraging having paid the final deferred consideration due on prior acquisitions. As a signal of the Board’s confidence in generating sustainable free cash flow going forwards, the business reintroduced an interim dividend."

[...]

[blusteradjuster] 01/12/2022 06:34

Fed’s Powell signalling a shift in policy wrt US interest rates.

Hardly surprising given the economic pain being felt.

What it should do for Adept is to make the debt issue less of one.

[red ninja] 19/11/2022 12:02

Investors Champion Comment :-



Adept Technology: all eyes on debt reduction
AdEPT (AIM: ADT), one of the UK's leading independent providers of managed services for IT and unified communications, announced results for the six months ending 30 September 2022.

Group revenue was flat at £34.2m (H1 FY22: £34.3m), impacted by global supply chain issues, but also highlighting the struggle for this business to grow in the absence of acquisitions.

In Cloud Centric Strategic Services revenue rose 3% to £15.1m with Managed Services revenue as a whole increasing to 89% of Group revenue (H1 FY22: 87%), offsetting the structural decline in revenue from legacy Traditional Telephony, from which the Group continues to move away.

Adjusted operating profit fell 4.7% to £5.45m while there was a reported pre-tax loss of £461k after £1.5m of finance costs.

The cash flow presents a better idea of what’s really going on, with the operating cash inflow £4.4m and free cash inflow £2.5m.

ADT also paid out deferred consideration for its previous Datrix acquisition of £4.3m. Senior net debt closed at £30.7m (H1 FY22: £31.2m), down £5.9m (16%) in the last 12 months. Unfortunately, there is also the small matter of £6.8m of a convertible loan.

We remain puzzled why Adept is committing to a pay a dividend when the focus should be on bringing down debt, especially in the face of rising interest rates. The forecast full year March 2023 dividend of 5.00p per share (yield 4.3% at the current 116p share price price) will cost approx. £1.25m, while full year cash interest payments will incur £2.2m. It might be affordable from c£8m of free cash flow, but it’s hardly money well spent and the high level of debt will continue to be a drag on the share price, in our opinion!

[value viper] 15/11/2022 11:22

Just need to be taken over - yawn

[blusteradjuster] 15/11/2022 07:23

The post-acquisition-spree Adept world.


Decrease to senior debt and acquisition liabilities of GBP5.9 million (16%) in the last 12 months.

Interim dividend of 2.5p (H1 FY22: Nil) - up 150% on final dividend of 1.0p in FY22.

Dividend cover of 4.8x.


The Group's GBP7.3 million convertible loan note is at a fixed interest and senior net debt is anticipated to reduce significantly over the coming 12 months. Based on the current base rate forecast (source: ICAEW.com) through to December 2024 of an increase to 4.5%, the interest cost variance against previous management expectation is GBP0.2 million, which is less than two-weeks operating cash flow.

[blusteradjuster] 07/11/2022 09:06

Would expect notice of results this Wednesday and results next Tuesday if 2021 is any guide.