(MENAFN- ProactiveInvestors)- adds detail broker comment share price- Business telecoms supplier AdePT Telecom (LON:ADT) posted another half year of healthy sales and profit growth as May acquisition Centrix chipped in the first time. Sales rose by 23% to £13.9mln in the six months to September with profits 20% ahead at £2.6mln stripping out one-off and acquisition costs. With those included pre-tax profits grew 4% to £1.17mln. Investors get a 33% dividend hike to 3p per share and Ian Fishwick chief executive said they can expect a similar amount at the end of the year. 'We are a very cash generative business' he said 'with minimal capital expenditure.' House broker Northland has pencilled in a further increase in the dividend to 7p for the following year (March 2017) a figure Fishwick said he is very happy with. Northland has also raised its estimates for underlying profits for the current year to £5.9mln from £5.6mln. There was more success in the UK public sector where AdEPT picked up 10 more council contracts in the past twelve months to make 28 in total. The appeal of Centrix was its extensive client base and specialist knowledge of the Avaya Aura phone system and it has broadened the group's skillset as well as bringing in an installed customer base of 300 said Adept. The most recent council win in Essex was the first in combination with Centrix. Fishwick also highlighted the growth in managed services revenues which jumped by almost 90% and now account for 41% of the total. Acquisitions mainly Centrix pushed borrowings up to £7.6mln but cashflow over the period was 10% higher at £2.5mln 'This has been an excellent 6 months with improved results in all key areas and an extremely positive contribution from the Centrix acquisition" the company said. Northland added AdEPT's proven track record in acquiring and integrating businesses bodes well. Centrix has broadened AdEPT's offering into system sales but the integration is proceeding to plan while the recent inclusion in a number of government network frameworks would mean additional opportunities. Its price target rises to 285p with a 'buy' rating. Shares added 19p to 265p.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.