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

Facilities by ADFAnnouncement

11/03/2025 07:15

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RNS Number : 0946A  Facilities by ADF plc  11 March 2025

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11 March 2025

 

Facilities by ADF plc

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

 

Trading Update and Notice of Results

Facilities by ADF, the leading provider of premium serviced production
facilities to the UK film and high-end television ("HETV") industry, provides
an update on trading in respect of both the financial year ended 31 December
2024 ("FY24") and also the current financial year ("FY25").

 

The Group expects to report FY24 revenue of £35.2m, with the acquisition by
the Group of Autotrak Portable Roadways Limited ("Autotrak") in September 2024
contributing £2.6m of revenue in the period. Revenues across the wider ADF
business were broadly flat versus the prior year (FY23: £34.8m) which was a
result of previously announced project delays following the USA Writers
(Writers Guild of America) and Actors (Screen Actors Guild - American
Federation of Television and Radio Artists) strikes from May to November 2023
(the "Strikes"), with Location One's revenue also declining slightly due to a
number of planned production start dates being delayed beyond 31 December
2024.

 

FY24 adjusted EBITDA* is expected to be £7.2m (FY23: £7.3m), with the margin
broadly consistent year-on-year at 20.5% (FY23: 21.0%).

 

Group cash as at 31 December 2024 was approximately £2.5m, with net debt of
approximately £13.7m. Debt balances principally relate to hire purchase
contracts against the hire fleet and all Group debt is covenant free. The
Group expects to be cash generative in FY25 and intends to pay a final
dividend in line with the prior year during July 2025.

 

The Company expects to publish its audited FY24 results in early May 2025.

 

Outlook

 

The legacy impacts of the Strikes have continued to recede and productions
that had previously been deferred from H2-FY24 into H1-FY25 have now started
in line with expectations.

 

Together with an increased level of enquiries throughout the first quarter of
the current financial year when compared to the same period in FY24, the Group
has a sound platform going forwards, albeit client enquiries have been made
with shorter lead times than has historically been the case. The Group remains
well positioned to capitalise on the underlying industry drivers and growing
market opportunities in the medium-term.

 

The Board anticipates that in H2-FY25 the market will provide improved
visibility and return to more normal levels of activity with several
'block-busters' announced including new Avengers, Spiderman, Fantastic Four
and Daredevil movies, alongside a number of high profile HETV productions
including Harry Potter, The Beatles, Icebreaker, Rivals, and further series of
Slow Horses.

 

However, FY25 to-date has seen the segments in which the Group operate remain
relatively subdued in terms of activity and this, in conjunction with an
increasing client focus on project budgets, has resulted in more challenging
market conditions. Whilst at this early stage in the year revenue and
profitability for FY25 are expected to be materially below current market
expectations**, the Company still expects to report revenue and profitability
for FY25 significantly ahead of FY24.

 

* Adjusted EBITDA is the adjusted profit before tax, prior to the addition of
finance income and deduction of depreciation, amortisation, and finance
expenses.

 

** Current market expectations, prior to this announcement, were for FY25
revenue of £56.8 million and adjusted EBITDA of £15.8 million.

 

Russell Down, Chairman of ADF, commented:

 

"As previously announced the Group expects to report results for FY24 in line
with FY23 and, whilst at an early stage in the year, expectations remain for
significant increases in revenue and profitability in FY25. The acquisition of
Autotrak is providing good revenue and cost synergies and the integration is
progressing well. Whilst the market for the Group's services remains
competitive, and short-term visibility has reduced, we remain confident in the
Group's longer-term prospects."

 

Marsden Proctor, CEO said:

 

"We updated the market in November 2024 that the start date of a number of
productions would be delayed from Q4-FY24 and pushed forward into to H1-FY25.
These productions have now been confirmed and started production including The
Witcher S4, Silent Witness S28, Call The Midwife S15 and The Gentlemen S2.
These are supplemented with other repeat and new productions including
Industry S4, Goodbye June, The Runner, Tin Man, Icebreaker, Trigger Point S3
& S4, and Rivals S2.

 

"A slower than expected return to pre-strike levels of activity, frozen
budgets, reduced production spend, and rising costs have all combined to
present short-term challenges. However, the long-term market outlook remains
favourable for ADF, buoyed by sustained high levels of investment in the UK
HETV and Film industry. The Board remains confident in the long-term prospects
of the Group as the market returns to more normal levels of activity."

 

For further enquiries:

 

 Facilities by ADF plc                                                via Alma

 Marsden Proctor, Chief Executive Officer

 Neil Evans, Chief Financial Officer

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

 Ben Jeynes / George Lawson / Hamish Waller - Corporate Finance

 Michael Johnson / Sunila de Silva / George Budd - Sales / ECM

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

 Josh Royston                                                         facilitiesbyadf@almastrategic.com (mailto:facilitiesbyadf@almastrategic.com)

 Hannah Campbell

 Sarah Peters

 

 

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