Facilities By Adf Share Discussion Threads

[disc0dave45] 01/12/2022 12:23

FlorenceCan you confirm that?, they would need to put at least a decent deposit down but take your point - they did say cash raised at IPO was for fleet expansion and acquisitions. They IMO are overcommitted in terms of their cash requirements.I simply don't trust the BOD.Appreciate your views.....unlike the children who simply ramp and name call.

[chubb24] 01/12/2022 12:16

Dave, there is nothing wrong with double checking something (ex-div date).

Anyway I'm off to a Marston's pub to check out the beers.

Good luck to all holders and all the best Dave

[florence141414] 01/12/2022 12:14

Dave, the orders for the fleet will be paid on delivery over the next few years which means they have the £16m available now to pay for things like acquisitions whilst making the money to pay for the fleet as and when it arrives.

I know you don’t believe that cash is there but it is, you have misunderstood an IFRS net cash number as a more straightforward net cash minus debt number and made all your extrapolations from that erroneous starting point.

You should email the company for clarification on that net cash figure you so often invoke. Ask them if the £2.4m includes lease liabilities, it will save you many more misunderstandings I’m sure.

[adamb1978] 01/12/2022 12:13

Chubb - put him on filter and he'll go away! Don't give him the oxygen and attention which he craves!

[disc0dave45] 01/12/2022 12:07

ChubbI've simply asked you some questions, given you hold here I'd have thought you might be able to answer them.Why would I invest here on the advice from someone that doesn't even understand what an ex div day is!?.Oh by the way, Bordon is still operable as far as I know, or could you post up something to the contrary as I may be wrong!.All the best

[chubb24] 01/12/2022 11:51

Dave, I've tried my best to engage in a fair and civilized manner but I do not have the energy for it anymore

As someone who does not have a position (long or short) in the stock, I do find it odd that you take such an interest in it. Surely there are other things to do to fill your time.

[disc0dave45] 01/12/2022 11:43

Dave, your comments were mainly on the cash balances and where this acquisition was funded from - hopefully Hastings can get answers on that.You reckon?, what do you think about their cash position?, what do you think about no mention of acquiring from the parent company?Are you licensed to give financial advice?

[gswredland] 01/12/2022 11:18

Good to see the share price respond well to the acquisition. Up nearly 15% as I type. The statement and acquisition bode well. Happy holder!

[chubb24] 01/12/2022 11:02

Hastings is going to speak to management later today, so hopefully he can cover your points and get you comfortable.

[disc0dave45] 01/12/2022 10:37

Have they taken on the debt (£2.7m) of Location One's parent company Location 1 Group Limited?

[disc0dave45] 01/12/2022 10:13

Nah, I'm living the life of Riley on my park bench.....merry Crimbo, can you spare £4.4m please sir?"cash balances at the period end were £16.0 million"Have you something constructive to say or are you going to continue trying to be funny and pumping this?

[hastings] 01/12/2022 10:10

Thought you'd be out doing some Christmas wrapping with the waitresses, now it's December!

[disc0dave45] 01/12/2022 10:06

They love splashing the cash!Net cash at H1 £2.4m"the group has committed to new fleet capital expenditure orders of approximately £7.8 million and £8.2 million for 2022 and 2023 respectively". Think that's £16m isn't it!?mmmm where is, or should I say where did, the £4.4m come from?.Think I asked before about what bank / RCF facilities do they have? can't see anything.

[masurenguy] 01/12/2022 10:01

Just illustrates the fact that the previous investment by ADF to increase capacity was fully justified.

[rivaldo] 01/12/2022 09:55

Indeed. Also some interesting quotes from today's RNS...

- from ADF's CEO : "as the UK continues to experience an increasing influx of inward investment and production and as we see the demand for content reaching record levels"

- and from Location One's CEO : "at a time when demand for our products is at an all-time high"

[chubb24] 01/12/2022 09:21

Seems like a perfect deal. they have not overpaid, large chunk of it in cash, immediately earnings accretive, perfect fit with existing business, management staying with acquired business - all boxes ticked.

Also new Longcross Operational Base has opened today according to the CEO's twitter.

Share price up 10%.

A good day for us holders.

[adamb1978] 01/12/2022 09:00

Thanks Hastings. I have it around 6.9p for next year. Will be interest to see where they come out

[hastings] 01/12/2022 08:53

I'll pop up later, but I may we'll be speaking with management today, so if that happens I'll write something up.

[adamb1978] 01/12/2022 08:42

Hi Hastings

Please could you share Cenkos updated figures?
thanks

Adam

[adamb1978] 01/12/2022 08:18

Thats a very nice deal. Clear strateguc fit. 50% of the consideration at largely zero cost given its being funded by cash on the balance sheet. It'll add something like a penny to EPS

Very very nice deal

[hastings] 01/12/2022 08:11

Cenkos has upgraded numbers as expected which sees ADF trading on a single digit PE close to 9 after the tick up.Continues to look highly attractive at these levels.

[rivaldo] 01/12/2022 07:33

Agreed, looks like an excellent "immediately earnings accretive" acquisition.

With all the elements I like to see, i.e paid for largely from cash, with a further large part subject to performance and the rest payable in shares as further incentivisation for the acquiree. Plus ADF know the company well having worked with them for a long time.

This is "the UK's largest integrated TV and film location service and equipment hire company", so a significant player. Margins are great, with £9.24m turnover bringing in £2.08m EBITDA.

[masurenguy] 01/12/2022 07:17

Good synergetic acquisition which should immediately be earnings accretive. Funded out of existing cash resources despite the constant troll BS that they haven't got any ! 👍

Acquisition of Location One Limited

Complementary services create an expanded Group offering as investment in the UK Film and TV industry continues to accelerate

Facilities by ADF, today announces the acquisition of Location One Limited the UK's largest integrated TV and film location service and equipment hire company. The Facilities by ADF and Location One businesses are well known to each other, with a successful history of working together on a wide variety of productions since Location One's conception.

Highlights

-- Acquisition of integrated equipment hire company providing complementary services to that of ADF, having worked together since 2008.
-- Location One customer base includes Amazon Studios, Netflix, Warner Brothers and the BBC.
-- Moves ADF towards becoming a one-stop-shop to the UK TV and HETV industry.
-- Initial consideration of GBP4. 43 million paid in cash alongside issue of 3,407,419 new ADF ordinary shares, subject to lock-in agreements.
-- Additional contingent earn out consideration of up to GBP2.66 million, payable in cash instalments subject to business performance thresholds over a 36-month period.
-- Acquisition to be immediately earnings accretive.

Location One is an integrated TV and film location service and equipment hire company supporting location and production companies across the UK with its high-quality equipment and customer service levels. Location One's offering includes generators, water bowsers, lighting equipment, environmentally friendly battery-stores/other renewable solutions and other capital light consumables, all highly complementary products to the Group's existing premium serviced production facility offering.

Founded in 2008, headquartered in Barking and with locations in London, Surrey, Bristol, Newport, Manchester and Newcastle, Location One and its team of 80 employees service a customer base that includes organisations such as Amazon Studios, Netflix, Warner Brothers and the BBC. Productions that Facilities by ADF and Location One have worked on together include: The Crown, Top Boy, Lazarus, Becoming Elizabeth, Embankment, My Lady Jane, and The Gentleman. For the year ended 30 September 2022, Location One generated unaudited revenues of £9.24m and an adjusted EBITDA of £2.08m. The Acquisition is expected to be immediately earnings accretive. Location One's talented executive management, led by founder MD Crispin Hardy, will be joining the Group.

Consideration

Total consideration for the acquisition is £8.86m, with 50£ payable in cash on completion, 30% payable in cash equally over 3 years, subject to EBITDA performance conditions, and 20% payable in ADF ordinary shares and subject to a 12 -month lock in. The cash consideration will be funded from ADF's existing cash resources. The acquisition is expected to be immediately earnings accretive.

[hastings] 01/12/2022 07:12

Good to see ADF acquiring looks like an excellent fit with the same looking client base.