REG - Facilities by ADF - Full Year Trading Update and Notice of Results

Facilities by ADFAnnouncement

29/02/2024 07:00

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RNS Number : 8674E  Facilities by ADF plc  29 February 2024

29 February 2024

Facilities by ADF plc

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

Full year trading update

 

Notice of Results

 

Facilities by ADF, the leading provider of premium serviced production
facilities to the UK film and high-end television ("HETV") industry, today
provides an update on trading in respect of the full year ended 31 December
2023 ("FY23").

 

ADF delivered another strong financial performance in FY23 with revenue
expected to be £34.8m (FY22 £31.4m) and adjusted EBITDA of £7.3m (FY22
£7.9m)((1)) and an adjusted profit after tax of £1.1M (FY22 £4.8M). This
performance reflects a record first half of the year, working on larger and
longer productions following strong demand for its services from global
streaming providers.

 

As previously announced and following the onset of the USA Writers (Writers
Guild of America) and Actors (Screen Actors Guild - American Federation of
Television and Radio Artists) strikes (the "Strikes") in May 2023, several
large productions that ADF was working on stopped filming immediately
impacting revenue levels in the second half of FY23 ("H2-FY23").

 

In response to the Strikes, the Group took several mitigating actions to
maximise profitability in H2-FY23, including securing shorter duration
domestic productions, and cutting the use of more expensive agency drivers
which enabled the Group to price services more competitively and win a larger
share of available business.

 

Overall, ADF supported 84 high-profile productions in FY23 with an average
revenue per production of £302k (FY22 - £381k). Notable productions included
The Crown season 6, Slow Horses, Star Wars Andor, The Gentleman, Rivals and
The Diplomat.

 

Outlook

 

Following the end of the Strikes in November 2023, and the continued growth in
demand for ADF's services as evidenced by the current order book, the Company
expects the financial performance of H1-FY24 to be significantly ahead of the
H2-FY23.

 

Notwithstanding the end of the Strikes, the impact on the film and HETV
industry has carried on into H1-FY24 with film and TV producers having to
reorganise the schedules of all relevant parties (studios, cast, crew,
ancillary services etc), which is proving challenging at short notice. This
has meant there will be a one-off reduction in utilisation in H1-FY24 before
returning to a full second half, more in line with pre-strike levels. The
Board will provide further guidance in this regard on publication of its
audited full year FY23 results.

 

Notice of results

 

The Group expects to announce its audited FY23 results in April 2024.

 

Marsden Proctor, CEO, said:

 

"Our performance in FY23 demonstrates the Group's resilience with a strong
first half countered by the first joint strike of Hollywood actors and writers
in over 60 years. The effects of the strikes will continue to be felt through
the first half of the current year, but we will carefully manage our cost base
during the period. The long-term market dynamics remain very much in ADF's
favour with continued high levels of investment in the UK HETV industry and
the Board is confident that we will return to pre-strike order levels and
beyond as conditions normalise."

 

 

(1)      Company compiled market expectations, prior to this
announcement, is for FY23 revenue of £35.0m and FY23 adjusted EBITDA of
£7.5m.

 

For further enquiries:

 

 Facilities by ADF plc                                 via Alma Strategic Communications

 Marsden Proctor, Chief Executive Officer

 Neil Evans, Chief Financial Officer

 John Richards, Chairman

 Cavendish Capital Markets Limited (Nomad and Broker)  Tel: +44 (0)20 7220 0500

 Ben Jeynes / George Lawson - Corporate Finance

 Michael Johnson - Sales

 Alma Strategic Communications                         Tel: +44 (0)20 3405 0205

 Josh Royston                                          facilitiesbyadf@almastrategic.com

 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.

 

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