'Prospects are stronger than ever' - AdEPT chairman 'delighted' as sales rise during H1 FY22

The provider of IT, unified communications, connectivity, voice and cloud services reported sales of £34.3m compared with £28.5m for the same period last year

Managed services provider AdEPT saw revenues rise by 20 per cent during the first half of its financial year.

The provider of IT, unified communications, connectivity, voice and cloud services reported sales of £34.3m compared with £28.5m for the same period last year, while adjusted profit after tax increased 16 per cent to £3.5m.

It follows a difficult FY2021 for the company which saw revenue fall six per cent, which AdEPT put down to the impact of the pandemic on orders and delays.

"I am delighted with the group's strong performance in the period, as activity continued to normalise in our sector, albeit somewhat tempered by the aftershocks of Covid-19," chairman Ian Fishwick said.

"We continued to deliver successfully on our strategic objectives, completing the strategic acquisition of Datrix, which strengthened our core competencies in cloud services and next generation technologies.

"One AdEPT, which lies at the heart of the group's growth strategy, providing high levels of operational visibility and a scalable platform for cross-selling, is nearing 100 per cent utilisation."

Adjusted fully diluted EPS increased 30 per cent to 13.2p, up from 10.2p in H1 2021, while the group saw organic growth of six per cent in Cloud Centric Strategic Services revenue and four per cent for Managed Services.

Sales for AdEPT Nebula, which provides networking and communication solutions, were up 26 per cent to £1.5m and VoIP revenue jumped 54 per cent to £1.9m

"Our focus in H2 is on the continued delivery of our stated objectives with an emphasis on the achievement of further organic growth, using the group's strong cash generation to reduce net senior debt, as we capitalise on the macro shift to cloud centric solutions," Fishwick added.

"AdEPT is on track to achieve management expectations for FY22, with £0.9 million of revenue and its associated margin, deferred from H1 due to supply chain issues and customer resource allocation, underpinning the board's confidence.

"The group's strategic progress, coupled with a strong pipeline of opportunities across the public and private sectors, driven by macro technology market trends, ensure that the prospects for AdEPT are stronger than ever."