Market newcomer Facilities by ADF (ADF:AIM) delivered its first trading update since listing a month ago and didn’t disappoint, with revenues and EBITDA (earnings before interest, taxes, depreciation and amortization) for last year seen comfortably ahead of market forecasts.
The firm, which provides premium serviced facilities to film and high-end tv sets in the UK and was the first company to come to market this year, said it expected turnover for the year to December of around £27.8 million against market forecasts of roughly £25 million.
‘Market dynamics continue to be strong with continued robust demand for film and high-end television the UK’, the firm reported. ‘This is further supported by unprecedented levels of investment in UK studio space and content, which bodes well for the Company's growth ambitions.’
Since raising £15 million in its IPO (initial public offering) the company has already started investing in additional vehicles and trailers to meet the boom in demand and is looking at opportunities to buy complementary businesses to add to its range of services.
Chief executive Marsden Proctor said he was ‘very pleased with the start we have made as a public company. We have an excellent customer base and a market backdrop which is seeing vast amounts of investment in the UK film and HETV industry. As we deploy the funds raised at IPO, we will continue to execute our ambitious, yet highly achievable growth strategy.’
EBITDA for last year is expected to top £7.5 million against consensus forecasts of around £6.5 million, meaning analysts will have to raise their 2022 and 2023 forecasts to adjust for the higher base. The shares added 1.2% to 84p, almost level with broker Cenkos’s 85p price target.
