Facilities By Adf Share Discussion Threads

[74tom] 05/2/2022 16:26

And more specifically on competition they state the below. Of note, they would become the clear UK market leader if they were to acquire any of their three main rivals...


"7. Competition

The Directors believe that the Group currently has a share of approximately 20 to 25 per cent. of the UK’s film and HETV facilities market, with three other main competitors comprising a further approximate 45 to 50 per cent. of the market. The Directors believe that the remainder of the market largely consists of smaller sole operators which only have the capacity for one or two concurrent productions.

The Group’s three major competitors are Translux International Limited, with an estimated market share of approximately 23 per cent. of the UK film and HETV market and an estimated fleet size of approximately 600; Movie Makers Limited, with an estimated market share of approximately 14 per cent. of the UK market and an estimated fleet size of over 500; and On-Set Location Services Limited, with an estimated market share of approximately 9 per cent. of the UK market and an estimated fleet size of approximately 250. Each of these competitors are privately owned and have each been operating in the market for approximately 25 years.

Given the Group is focused on the HETV market, the Directors estimate that the Group has approximately 36 per cent. of the UK HETV market share, with Translux International Limited, Movie Makers Limited, On-Set Location Services Limited, and other smaller operators, having approximately 19 per cent., 6 per cent., 10 per cent., and 29 per cent., respectively."

[74tom] 05/2/2022 16:23

Thanks Rivaldo, great read. I did the same @hastings, I've also been wondering why I didn't buy more on the first day at 55p but I don't think it'll matter much in the longer term! Re. acquisitions, the admission doc is very informative;

"Inorganic growth

ADF’s inorganic growth strategy will focus on the following areas:

* Competitor suppliers – the Directors estimate that ADF currently has approximately 20 to 25 per cent. of the UK TV and film facilities market, with three other main competitors comprising a further approximate 45 to 50 per cent. of the market, and the remainder of the market largely consisting of smaller sole operators. All of these competitors are private companies and the Directors believe that ADF’s access to public capital markets and share incentives following Admission will put the Company in a strong position for acquisitions, with any acquisitions increasing ADF’s market share.


* Complementary services for film and TV – ADF can expand its range of services through the acquisition of other businesses servicing the UK film and TV industry. Such businesses may include those which provide storage, props, catering, training and other equipment to ADF’s own customers. The rationale of expanding ADF’s range of services will be to move ADF closer to a “one stop shop”
for film and TV producers and to capitalise on cross referral of sales.


* Expansion into Europe – acquisition of European film and TV production suppliers, initially focused, in Spain, France and Eastern Europe. The Directors believe that the acquisition of international businesses with existing teams and equipment will be a more productive route to gaining international market share than attempting to grow ADF’s business purely organically in overseas jurisdictions."

[hastings] 05/2/2022 14:48

Very informative rivaldo, thanks for posting.Added a few more this week, after accepting that I most likely wouldn't pick them up around the 60p mark!Looks set to push on a lot further, once more stable market conditions arrive, so quite possible to build a decent position at present. That said, I got the feeling when speaking with management that acquisitions were very much on the agenda, so if something was announced on that front, along with what should prove impressive forthcoming results then we could charge on quite quickly.

[rivaldo] 05/2/2022 10:33

The boom continues unabated per today's Guardian:



Extracts:

"UK film and TV industry bounces back from Covid with record £5.6bn spend

Annual investment doubles as production industry races to replenish libraries depleted by the pandemic

The UK film and TV industry has bounced back spectacularly from the pandemic with a record £5.6bn spent making blockbusters such as Mission: Impossible 7 and big-budget dramas including Bridgerton in the UK last year."

"The production industry moved into overdrive last year as broadcasters, streaming platforms and Hollywood studios worked to replenish their depleted content libraries for the small and big screen, with spending up almost £1.3bn on the previous record set in pre-pandemic 2019."

"In November, Netflix struck a deal to double the size of its base at Shepperton Studios, where it has made productions including the TV series Enola Holmes and the Charlize Theron film The Old Guard, and spent about $1bn this year making 60 TV shows and films in the UK.

Disney has a similar large-scale deal at Pinewood Studios, where Star Wars and Marvel films are based, and Apple has secured facilities in Aylesbury, Buckinghamshire.

The streaming wars have sparked a response from traditional broadcasters with Sky, which is building a new large-scale complex at Elstree in Hertfordshire, with Comcast-owned stablemate Universal Studios, unveiling its biggest-ever slate of original content investing in 125 TV series and films this year.

“The groundwork for further growth is under way with expansion of studio spaces and production hot spots across our nations and regions,” said Roberts. “And we are working with industry to build up the skilled workforce that we need to meet demand and stay on top of our game.”"

[desertrat13] 05/2/2022 08:54

7 facilities trailers plotted up in Pall Mall on Friday night,they must be working on the same shoot as Movie Makers as they were there the night before,great to see though.

[rivaldo] 03/2/2022 09:03

Decent coverage today on Investors' Champion as part of their usual monthly review of new issues:



"There was only one new arrival, which we cover here.

Facilities by ADF (AIM:ADF) is a provider of premium serviced production facilities to the UK film and high-end television industry.

ADF hires out its facilities to productions throughout the UK and Europe, providing its services to some of the world's largest traditional and on-demand content production companies. It is the only high-volume facilities provider in Europe that is approved by albert, an organisation that measures and assesses the environmental impact of businesses in the film and television industry.

ADF was established in 1992 in Bridgend, Wales, and has grown to the point where it now services productions with its fleet of over 500 trailers and vehicles, providing services to the largest global production companies including Netflix, Sky, BBC, ITV, Disney, HBO, and Apple, amongst others. It has worked on some of the UK’s most popular television series, such as The Crown, Gangs of London and Peaky Blinders.

ADF’s production fleet is made up of premium mobile make-up, costume and artiste trailers, production offices, mobile bathrooms (known as honey wagons), diners, school rooms and technical vehicles.

The industry in which it operates has experienced significant growth in recent years with additional demand driven by a material rise in the consumption of film and HETV content via streaming platforms such as Netflix, Disney and Amazon Prime.

Major US streaming companies have now set up permanent bases in the UK, which is now Netflix’s third largest operation after the USA and Canada.

With increased demand for its services, ADF’s fleet capacity is already almost fully booked for the 2022 calendar year.

The 2020 financial year was severely impact by the pandemic with revenue falling from £15.9m in 2019 to only £8.0m in 2020, although the group still generated positive EBITDA of £0.83m compared to £3.34m in 2019. For the six months ending 30 June 2021 revenue recovered strongly to £11.5m with EBITDA of £4.17m. It has ambitions to grow its business to £100m of revenue.

On AIM admission, ADF raised £13m of new money and £3.39m for selling shareholders at a price of 50 pence per share, with the market capitalisation on admission £37.7m. Despite the challenging market, the shares have attracted plenty of buying activity and are currently 40% up on the admission price.

We wish it great success on AIM"

[74tom] 02/2/2022 10:43

Looks like it! Personally this is the best GARP stock I've seen for a long time, the fact it's also a reliable dividend payer only adds to the appeal. If only all IPO's were as stellar as this one...

[rivaldo] 02/2/2022 10:39

Hopefully our sellers have run out of stock....

[desertrat13] 02/2/2022 08:43

I’ve seen Facilities at ADF trucks every night this week in different parts of central London,2 large vehicles pulling out of the Oval cricket ground late last night,they do seem very busy.

[sphere25] 02/2/2022 08:27

Might be too early a call this but moving a tad different this morning. Possible first sign of shares drying up at these price points.

Market makers moving up. Cenkos not on the offer, they are on the bid. Can't buy in size. Different dynamic but wait and see.

All imo
DYOR

[purple11] 02/2/2022 08:26

joined the bulls gla

[kierandoberman] 02/2/2022 02:29

11 productions starting this month with add revenue of £15 million to what's already on the books , what's not to like about ADF ? I say they are on plus of 30 million for 2022 and wouldn't be surprised @ 50

[74tom] 31/1/2022 11:23

There go Cenkos again, dropping the bid to 63.5! Shake shake shake... 95% buys reported today, at some point this is going to rocket.

[74tom] 31/1/2022 08:24

Decent reaction, but the price is still being kept on a piece of string by Cenkos… the rest of the market makers had taken the offer over 70p yet Cenkos have dropped it to 69 and are walking lower, this has been happening daily for the last few weeks.

I suspect they’re collecting for large buyers that can’t get filled on the open market and want in sub 70p.

I agree @Rivaldo, once figures are RNS’d this surely has to move towards the £100m market cap level - particularly as it’s paying a dividend!

[cheshire man] 31/1/2022 08:05

Nice reaction to the tip I see :-)

[nobilis] 31/1/2022 06:52

Adf brill!! Got last week

Xlm look good too

Bloomberg.com continued: "For decades, sports betting was an add-on at most casinos. It added to the flavor of the place, but the real action (and revenue) was at slot machines, keno, roulette and other table games. Now, sports betting is surging. Goldman Sachs Group Inc. predicts the online market could reach $39 billion in annual revenue by 2033 — up from less than $1 billion today (2021). Digital betting has been behind this surge. Like many online activities, it got a huge boost from the Covid-19 lockdowns. Mobile wagering has become the preferred method of sports gamblers (gambling revenue at the corporate level represents total wagers minus payouts to winning bettors)… In states where sports betting is popular, mobile has quickly overtaken on-site sports betting.

[rivaldo] 30/1/2022 22:30

Excellent news, cheers. Assuming trading is confirmed as booming as per the IPO prospectus there's every chance that ADF could double or more from here in fairly short order imo - and over time there's room for much more both organically and via acquisitions.

[74tom] 30/1/2022 10:45

Great stuff. The news that 2021 revenues are expected to be approaching £30m is fantastic, if they’ve maintained the operating profit margin of 25.5% that they achieved in H1 2021 then operating profit will be ~£7.6m… after tax you’re looking at £6m / 8p EPS

I did think something strange was happening with the share price behaviour all week, this was typified on Friday with the price dropped in the morning on a few small sells & then a delayed 53k buy reported after close from 10.30am…

[masurenguy] 30/1/2022 08:34

Good spot rimau1. It should bring the company onto more radar screens. I think that the following extract sums up the potential here.

"The company is set to provide a trading update for 2021 early next month, and followers expect full year sales approaching £30m, almost double the level they were before the pandemic. Dividends are on the cards too, as the company throws off plenty of cash and is keen to reward shareholders. Richards and Proctor are highly ambitious, intending to increase turnover to £100m within the next 5 years through a combination of organic growth and selective acquisitions. The duo will move carefully, however, not least because both men are shareholders, with around 5% of the stock between them.

Midas verdict: A well-regarded operator in a fast-growing industry, the company is ideally placed to benefit as the UK cements its position in the entertainment industry. As the business expands, the shares should follow suit. At 63p, the stock is a buy."

[rimau1] 30/1/2022 01:23

Nice article in Midas, should get a decent bounce on Monday!

[starpukka] 27/1/2022 12:10

My timing isn't usually that good rivaldo. haha.

[rivaldo] 27/1/2022 10:20

Nice bounce this morning....

[starpukka] 26/1/2022 16:16

Happy to top up today @ 60.65 on the recent dip .

[rivaldo] 20/1/2022 09:39

The main ADF Twitter account isn't a great mine of info, apart from confirming that they're extremely busy given the amount of job vacancies!

However, the CEO's Twitter account is busier and more informative:



Overnight he tweeted these pictures of ADF and the Batman logo, and also news of the sequel to The Meg to be shot at Leavesden......