Facilities by ADF PLC on Thursday said that its performance in the second half of 2023 had been impacted by Hollywood strikes, forcing the company’s expectations for the full year below market consensus.

Facilities by ADF is a provider of serviced vehicles, including mobile makeup trailers and offices, for TV and film productions. Shares in the company were down 11% at 47.22 pence each in London on Thursday afternoon.

The company is expecting around £34.5 million in revenue for 2023, 11% ahead of the £31.4 million in revenue delivered in 2022.

ADF is anticipating £7.3 million in adjusted earnings before interest, tax, depreciation and amortisation, 7.6% down from £7.9 million a year prior.

Prior to this update, the company’s collated market consensus predicted GB35.0 million in revenue and £7.5 million in adjusted Ebitda.

ADF said that its performance reflects a ‘record’ first half, which was then undone by the impact of the US writer and actor strikes between May and November.

Several large productions on which ADF had been working were shut down, driving down revenues in the second half, the company said.

ADF said that it took several actions to mitigate the impact of this downturn, including securing shorter domestic productions, and limiting its use of expensive agency drivers, allowing the company to lower its prices and win a larger share of available business.

Overall, ADF contributed to 84 productions over the year, which brought in an average revenue of £302,000, down from an average of £381,000 in 2022.

Looking ahead, the company said that it is still experiencing high demand for its services and, following the end of the strikes in November, expects its performance in the first half of 2024 to be ‘significantly ahead’ of the latter half of 2023.

Chief Executive Officer Marsden Proctor said: ‘Our performance in 2023 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...and the board is confident that we will return to pre-strike order levels and beyond as conditions normalise.

Facilities by ADF expects to announce its full results for the year in April.

Copyright 2024 Alliance News Ltd. All Rights Reserved.