REG - AdvancedAdvT Limited - Acquisition of HFX Limited

AdvancedAdvTAnnouncement

14/05/2025 07:00

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RNS Number : 5385I  AdvancedAdvT Limited  14 May 2025

14 May 2025

 

AdvancedAdvT Limited

 

Acquisition of HFX Limited

 

AdvancedAdvT Limited (AIM: ADVT, "AdvT", "the Group"), the international
software solutions provider for the business solutions, healthcare compliance,
and human capital management sectors has agreed to acquire HFX
Limited ("HFX"), the provider of a cloud based workforce management SaaS
solution (the "Acquisition"), for a total consideration of £5.3 million net
of cash acquired of £0.6 million(1), of which £2 million is deferred over
two years(2). The acquisition will be funded from the Group's existing cash
resources.

 

Acquisition highlights

In the 12 months ended 31 December 2024, HFX recorded pre-exceptional revenue
of £3.39 million (73% recurring), with pre-exceptional EBITDA(3) of £0.93
million and had net assets of £2.51 million(4).

 

Strategic Rationale for the Acquisition

HFX provides workforce management software to over 450 customers across a wide
range of sectors ranging from SMEs to smaller enterprise customers. Combined
with WFM the acquisition significantly expands the Groups existing workforce
management software offering with a complimentary SaaS product, enabling us to
better serve both enterprise and SME customers with tailored solutions. It
will also provide an alternative solution for smaller on-premise clients to
migrate to and enjoy all the benefits a cloud solution. HFX further expands
our addressable market and scale in the UK, aligning with our strategy to
enhance long-term growth through recurring SaaS revenues.

 

Vin Murria OBE, Chairperson of AdvancedAdvT, commented:

"HFX is a recognised leader in workforce management software. It expands our
presence in the space and aligns strongly with our strategy to invest in
quality software businesses that drive efficiency and long-term value for its
customers. We look forward to working closely with the HFX team to unlock
value and deliver enhanced integrated solutions to a broader client base.

 

"We continue to look for complementary acquisitions that further enhance our
offering to clients and creates value for shareholders."

 

 

1. Cash as at 30 April 2025.

2. £2m deferred payment is £1m due on 13/05/2026 and £1m due on 13/05/2027.
There are no performance conditions.

3. "EBITDA" defined as Earnings before Interest, Tax, Depreciation and
Amortisation.

4. £4.70 million less the ultimate shareholder loan of £2.19 million, which
was settled as a non-cash distribution prior to completion.

 

Enquiries:

 

 AdvancedAdvT Limited
 Vin Murria, Chairperson

 Gavin Hugill, Chief Financial Officer

 Singer Capital Markets (Nominated Adviser and Broker)  Tel: 020 7496 3000
 Philip Davies / Sam Butcher

 KK Advisory (Investor Relations)                       Tel: 020 7039 1901
 Kam Bansil

 

 

Note to Editors

 

AdvancedAdvT Limited (AdvT) provides software solutions and platforms across
two business transformational areas: business solutions & healthcare
compliance, and human capital management.

 

AdvT is an agent for change. The Group enables the delivery of Artificial
Intelligence ("AI"), data analytics and business intelligence, all of which
are key future drivers for growth in these sectors where long term
digitisation trends are set to transform the workplace for professionals.

 

AdvT is developing both organically and through acquisitions, by expanding its
presence across adjacent markets, geographical boundaries and digital sectors.

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