Facilities By Adf Share Discussion Threads

[disc0dave45] 15/2/2023 09:14

Premium saddo pmslHow are they going to increase EBITDA by 55% when EBITDA per production is 11% lower than FY21?. All that additional debt interest on fleet, corporation tax increasing as will their depreciation charges and amortisation.

[rivaldo] 14/2/2023 23:31

Nice to see ADF getting highlighted prominently in the Mail's market report for tomorrow's edition:



"Stock Watch - ADF

ADF, the movie make-up trailer group, made a strong start to its first year as a listed company.

The firm, which worked on the production of the fifth season of The Crown , said revenue and profit for the year to December should be higher than the previous 12 months.

It has continued to pick up orders for larger productions with higher revenue per job in its current financial year.

Shares, which floated at 50p on January 5 last year, rose 7.3 per cent, or 4p, to 58.5p."

[disc0dave45] 14/2/2023 17:10

Premium saddo you've taken a wrong turn chap, try next left where the children reside and tick up where the sun don't shine :)

[rivaldo] 14/2/2023 14:09

FYI here's the rest of Cenkos's summary today:

"Delivering on Everything and More

ADF has released a positive trading update for the period ending December 2022. FY22E revenues of £31.4m and Adj EBITDA of £7.9m are in-line with our expectations and we leave forecasts unchanged. FY22E has been a transformational first year for ADF as a listed business which has seen fleet growth, site enlargement, geographic expansion, and an acquisition of a complementary business. It has set the stage for further growth in FY23E and years to come, both organically and acquisitively. ADF trades on an inexpensive FY23E P/E of 8.4x compared to equipment hire peers on 10.2x, especially given the superior earnings growth.

 Financial Update: FY22E revenue is expected to be £31.4m and Adj EBITDA is forecast to be £7.9m, in-line with our forecasts. As we highlighted at the interim results, the second half of the year was expected to show a large jump in Adj EBITDA as H1/22A had been tilted towards shorter, less profitable productions. This was indeed the case with H2/22E Adj EBITDA of c£5.3m compared to c£2.6m in H1/22A.

There is significant revenue visibility given the c12 month lead times for many bookings and the Company has positively guided to FY23E seeing a continuation of the high value productions seen in H2/22E.

 Operational Highlights: Management have set the stage for a strong FY23E with a forecast top-line growth of c50% and Adj EBITDA growth of c55%. This is supported by the following operational developments over the past year:

 Capex of c£9m invested in new fleet vehicles to drive organic growth, with a similar amount expected in FY23E.
 Expansion of its manufacturing facilities in Bridgend and moving to a new larger operational base at Longcross, which is conveniently located near major customers.
 Opening a new office and base at Pioneer Studios in Scotland to tap into growing filming demand there.
 Acquisition of Location One Ltd to build-out highly complementary filming equipment hire services to become the premium one-stop-shop for the industry."

[kalai1] 14/2/2023 12:23

Facilities by ADF, the leading provider of premium serviced production facilities to the UK film and high-end television industry, issued an update on trading for the FY ended 31 December 2022 this morning. ADF delivered strong performance during its first full year as a listed business, the Board anticipates FY22 results will be in line with current market expectations. These are for revenues £31.4m (FY21 £27.7m) and adjusted EBITDA £7.9m (FY21 £7.7m). The outlook also remains upbeat, market dynamics remain strong, with continued robust demand for film and high-end television in the UK and as a result the Group's 2023 order book continues to grow. Valuation looks reasonably attractive with forward PE ratio top quartile at 9.2x, PS ratio is a less flattering and mid-range at 1.5x. The balance sheet looks pretty solid, but share price lacks momentum and has been drifting sideways since listing a year ago. There looks to be growth, profit and value here, but there is no apparent rush to buy. ADF is an interesting, niche share worth monitoring for the medium term...

...from WealthOracle

[onjohn] 14/2/2023 12:19

toilet hire makes good investment

[gswredland] 14/2/2023 12:07

Very happy holder!
All bodes well

[rivaldo] 14/2/2023 10:09

Whatever you think about EBITDA, forecasts are for historic 4.6p EPS and 6.3p EPS forecast this year, which leaves ADF looking very good value at these levels.

Cenkos note that "further earnings upgrades could also come from future acquisitions using the existing cash pile as we currently do not include these in our forecasts."

The EV/EBITDA - which of course takes net debt into account - is forecast to end this year at only 4.4. This is extremely low and very healthy.

[74tom] 14/2/2023 09:41

Massive lease costs is such an stupid exaggeration, the H122 results had adjusted EBITDA of £2.6m which was a combination of £1.5m operating profit and £1.1m added back for depreciation.

This morning they report EBITDA of £7.9m for the full year, so H2 = £5.3m, let's assume depreciation increased to £1.4m in the period, that gives H2 operating profit of £3.9m and PAT of ~£3m. Cash generated from operations will therefore by around £3m, assuming neutral working capital movements. They will then have used that cash to purchase more fleet assets, as they flagged at IPO. So net cash usage will likely be flat.

Once they reach their desired fleet size then the cash generated from operations will be free for whatever they please, and for a £45m market cap £4m a year FCF is pretty material (particularly given they had £16m in the bank at 30/06).

This appears very cheap to me & those who have been a source of constant doom & gloom are being proven wrong on a consistent basis. Let's hope Mr Proctor ensures that this continues...

[eezymunny] 14/2/2023 09:14

I see the company still talking about adjusted EBITDA. Absolutely meaningless for a company that has massive lease costs. Beware companies quoting only their most flattering numbers IMO. Can't wait to see the cash flow statement....

[florence141414] 14/2/2023 07:52

Looks very good moving forward. Extrapolating the H2 figures from the information in the update against the H1 results, I make H2 revenue 18.8m vs 12.6m in H1. Plus they have guided that H2 was higher margin, better quality work so H2 net profits are likely 3m at least. With a positive outlook for FY23 then we must be on an annualised run rate of 6m or thereabouts.

All caveated by the caution that these are not cash flows yet as we are still building so there remains some execution of strategy risk.

[hastings] 14/2/2023 07:41

Indeed riv, in-line as previously stated by management and looking well set moving forward.

[rivaldo] 14/2/2023 07:18

Excellent news.....ADF have delivered a very good H2, and 2022 results are therefore nicely in line with expectations of 4.6p EPS.

The £7.9m EBITDA is actually slightly ahead of expectations (£7.8m).

Most importantly, the outlook is very confident and supports the 6.3p EPS forecast for this year.

In which case the current 54.5p share price appears to offer extremely good value:

"The Group is currently taking orders for Q4 FY23, and looking ahead the order book remains strong with increasing revenue visibility.

With a healthy sales pipeline, growing network of contacts, and positive market backdrop, the Board is confident that the Group's progress over the last year is set to continue in the coming year."

And the CEO is equally bullish:

"The prospects for ADF are increasingly positive and we have entered FY23 in a very strong position with considerable momentum across the business. We have a growing addressable market, an expanding network of contacts, an enhanced offering and a high-quality business model driving growth in Group revenue. These factors, coupled with a strong order book, underpin the Board's confidence in the long-term success of ADF."

[disc0dave45] 13/2/2023 12:06

The press are highlighting that Hunt will shake-up the tax relief for UK film and high end TV productions making them less attractive for UK investment in this sector.

[disc0dave45] 13/2/2023 08:58

There was a trading update 11th Feb last year, so could be one this week maybe.

[disc0dave45] 09/2/2023 15:29

Pmsl, I’m an ex employee now with a grudge, classic. So I’m deramping to get the price down, I’m a shorter, now I’m an ex employee!…..how stupid, all because I’m posting my views which don’t align with yours and the rest of the gang next door.
Suggest rather than personal digs you might try actually doing a bit more research on your precious investment, then post up anything useful…..that’s a first for you.
Have a good day.

[antanatar] 09/2/2023 15:20

"the ramping thread is next door".... i dont think anything i said was ramping Dave.... must have touched a nerve.

I am wondering whether you are an ex ADF employee with a grudge to bear though

[disc0dave45] 09/2/2023 13:18

As I've said before - you are deluded if you think what I post will have any influence on the share price. Also as I've posted previously I was interested in investing here but was put off by further research and my mistrust of what the BoD say.Why are you posting here, the ramping thread is next door, you don't have to read this thread or indeed anything I post, just filter me.

[antanatar] 09/2/2023 10:56

Dave,

I've said it before and i'll say it again

For a person who isn't financially invested in the company you certainly seem to be spending a lot of effort trawling the net for any smidgen of news that looks like it will impact the company negatively.

If you posted occasionally with the big issues you may get people genuinely taking notice rather than thinking you are de-ramping to get in lower

[disc0dave45] 09/2/2023 09:35

Disney to cut 7,000 jobs as streaming numbers fall for first time.Disney+ reported a $1.5bn loss and its subscribers fell by around 2.4m to 161.8m.Https://www.bbc.co.uk/news/business-64576228

[disc0dave45] 01/2/2023 12:11

So moving staff to existing premises is now branch expansions, jeez, whatever next.

[rivaldo] 01/2/2023 09:17

More Location One expansion announced with new branches at ADF's baes in Longcross and Bridgend, which should help with cross-selling, operational synergies etc:



Hopefully a trading update coming soon, perhaps the week commencing 13th February given last year's date. The acquisition of Location One on 1st December will have complicated matters as regards the year end figures, so may have pushed back the finalisation somewhat.