Adept reports sales hike and rise in costs

Adept Technology Group has reported a big rise in sales for the first half, aided by recent acquisitions.

In the six months ended 30th 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: "We will continue to pursue our strategy to identify earnings enhancing acquisitions while retaining the ability to continue with our progressive dividend."

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