AdEPT Technology Group Plc has reported a big rise in sales for the first half, helped by recent acquisitions completed by the MSP.
In the six months ended 30 September, revenue climbed 26% to £30.8m from £24.4m reported last year. But a rise in costs led to a 6.3% pre-tax profit decline to £2.4m, compared to the £2.6m last time.
Amortisation costs also grew by 44% to £2.9m from £2m, and depreciation expenses more than doubled to £681,000. There were also £236,000 in restructuring fees, when there were none last year.
AdEPT said: "Total revenue in the period increased by 26% and includes the six-month revenue contribution from Advanced Computer Systems Group following the acquisition in April 2019; and a full six-month contribution from Shift F7 and ETS Communications Holdings." The company acquired Surrey-based Shift F7 in August 2018 for an initial £5m, before then buying West Yorkshire-based ETS for £2.5m. Advanced Computer Systems Group cost it an initial £5.2m.
Following the results, AdEPT raised its interim dividend by 4.1% to 5.10 pence per share, from the 4.9p paid out last year. Chairman Ian Fishwick said: "I am pleased to see the positive results of our efforts, as trading continues to be in line with management's expectations. We will continue to pursue our strategy to identify earnings-enhancing acquisitions whilst retaining the ability to continue with our progressive dividend."
The AdEPT share price dipped on the results though, falling 5.8% on Tuesday. It is currently over 2% lower.
