Comms VAR ponders further acquisitions following fundraising

AdEPT plans to raise up to £4m

Comms supplier Adept Technology is poised to continue its M&A strategy after launching a funding round.

The AIM-listed firm revealed plans to raise up to £4m via the listing of new shares this morning.

In a note to the stock exchange, Adept listed key areas that will drive its growth, including the development of its own intellectual property and further acquisitions.

Last year it acquired ACS for £5.2m, adding to deals for Shift F7 and ETS in 2018, which have helped it move into the IT space.

Adept said: "Since 2015, the board has successfully pursued a strategy of building AdEPT so that it can offer one-stop converged delivery of IT and communications infrastructure and services to its broad range of customers.

"In part, this has been achieved by the acquisition and integration of a number of companies around the UK which have brought complementary services and skills to the group.

"Acquisitions are a key component of the AdEPT strategy and the board believes that there is significant opportunity and value to be found in the highly fragmented UK managed services sector within the ICT arena.

"There is continuous evaluation of potential strategic acquisitions which should complement the existing business while adding shareholder value."

Adept reported half-year numbers in November, with sales up 26 per cent to £30.8m, largely as a result of revenue contributions from acquired businesses. Organic revenue growth was 2.5 per cent.

EBITDA was up 18 per cent to £6.1m, while EBITDA margin was down slightly to 19.8 per cent, from 21.2 per cent in the comparative half last year.