REG - Facilities by ADF - Full year trading update and notice of results

Facilities by ADFAnnouncement

14/02/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230214:nRSN7851Pa&default-theme=true

RNS Number : 7851P  Facilities by ADF plc  14 February 2023

14 February 2023

Facilities by ADF plc

("ADF", the "Company" or the "Group")

Full year trading update and notice of results

 

Strong trading delivering on all areas of growth strategy

 

Facilities by ADF, the leading provider of premium serviced production
facilities to the UK film and high-end television industry, today provides an
update on trading for the full year ended 31 December 2022 ("FY22").

 

ADF delivered a strong performance during its first full year as a listed
business, with high levels of fleet utilisation during the period, and as
such, the Board anticipates FY22 results will be in line with current market
expectations. ADF raised £15m at IPO in January 2022 and to date has invested
£8.9m in new revenue generating fleet. Capital expenditure spend is likely to
be at the same level in 2023 as the Group looks to keep up with demand and
drive further growth.

 

Revenue for the year is expected to be £31.4m (FY21 £27.7m) and adjusted
EBITDA £7.9m (FY21 £7.7m) reflecting the continued positive momentum across
the business in H2-FY22.

 

The distribution of productions in H1-FY22 saw a larger number of shorter
productions (46 in total) more geographically spread than in H1-FY21,
resulting in additional budgeted transport costs for moving equipment between
productions. In H2-FY22 ADF worked on 30 productions that were larger and more
clustered around London. Overall, from the 76 productions for the year (FY21
39 productions) the Group generated an average revenue value of £390k per
production (FY21 £682K). The FY23 order book indicates a continuation of the
H2-FY22 trend, with larger productions with a higher revenue per job.
Productions included The Crown season 5, Slow Horses, Everything I know about
Love, The Sandman, Marvels Secret Invasion, I Hate Suzie, Sex Education, Happy
Valley, Troubled Blood and A Spy Amongst Friends to name a few.

 

In response to the increased demand for ADF's services, the Group expanded its
geographical reach to ensure it could continue to deliver a high level of
service for its customers and partners. Highlights included expansion into
Scotland, with the opening of a new office at Pioneer Film Studios, to serve
the growing number of global production companies filming in the region, and
the doubling of capacity at its Bridgend manufacturing facility.

 

In November 2022, ADF successfully completed the acquisition of Location One
Ltd, the UK's largest integrated TV and film location service and equipment
hire company, and integration is progressing as planned and the acquisition
performing in line with management's expectations. The acquisition will enable
further expansion across the UK and brings highly complementary services to
ADF which provide a wealth of cross selling opportunities to the enlarged
Group, as well as deliver efficiencies through central services. The Board
believes that this is a significant step in becoming the premium one-stop-shop
for film and HETV.

 

The Group has now opened its new flagship five-acre operational hub at
Longcross, Surrey. The site is perfectly located to serve all major studios
near Longcross, including Shepperton Studios, Pinewood Studios, Leavesden
Studios, and Elstree studios. The new sites demonstrate ADF's commitment to
its growth strategy and reflects the increased demand for the Group's
services.

 

Outlook

 

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. In 2022, a record £6.7 billion was spent on HETV
production in the UK, up 11.1% on 2021 and as such, the Group remains
confident of further success.

 

The healthy underlying growth of the enlarged Group provides the management
team with the confidence to invest in its people and offering, while
successfully managing the inflationary environment within budget.

 

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.

 

Notice of results

 

The Group expects to announce its audited full year results in May 2023.

 

Marsden Proctor, CEO, said:

"I am incredibly proud of the successes achieved during our first full year as
a listed business by our fantastic team, against a challenging economic
backdrop. We delivered on our growth strategy through the successful
acquisition of Location One, substantial investment in our fleet and
geographic expansion across the UK.

 

"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."

 

For further enquiries:

 

 Facilities by ADF plc                                        via Alma PR

 Marsden Proctor, Chief Executive Officer

 Neil Evans, Chief Financial Officer

 John Richards, Chairman

 Cenkos (Nominated Adviser and Broker)                        Tel: +44 (0)20 7397 8900

 Ben Jeynes / Max Gould / George Lawson - Corporate Finance

 Alex Pollen - Sales

 Alma PR (Financial PR)                                       Tel: +44 (0)20 3405 0205

 Josh Royston                                                 facilitiesbyadf@almapr.co.uk

 Hannah Campbell

This announcement contains inside information for the purposes of the UK
Market Abuse Regulation and the Directors of the Company take responsibility
for this announcement.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTSFSFADEDSEFE