Full year trading update and notice of results

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 Marsden Proctor, Chief Executive Officer Neil Evans, Chief Financial Officer John Richards, Chairman	via Alma PR
Cenkos (Nominated Adviser and Broker) Ben Jeynes / Max Gould / George Lawson - Corporate Finance Alex Pollen - Sales	Tel: [phone]
Alma PR (Financial PR) Josh Royston Hannah Campbell	Tel: [phone] [e-mail]

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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