Today sees the arrival on the junior market of one of the more unusual companies to list in recent months, Facilities by ADF (ADF:AIM), which provides premium serviced production facilities to the UK film and television industry.
Established in the early 1990s in Bridgend, ADF is the UK’s leading provider of premium production facilities with a 35% share of the high-end television market thanks to its fleet of over 500 trailers and vehicles.
It has worked with all the leading production companies including the BBC, ITV (ITV), Netflix, Sky, Disney, HBO and Apple, and was involved in major tv series including ‘The Crown’, ‘Gangs of London’ and ‘Peaky Blinders’.
According to the BFI (British Film Institute), spending on film-making and high-end tv in the UK hit £6 billion last year, more than double the amount in 2020 which admittedly was impacted by Covid restrictions.
For ADF, revenues in 2020 were £8 million against nearer £16 million in 2019, but 2021 saw a dramatic rebound with the firm garnering £11.5 million of revenues in the first half alone, putting it on track to top £20 million for the full year. In time, the group aims to grow its annual revenues to £100 million.
Due to the material increase in the consumption of film and tv on streaming services, all the major US streaming services have now set up permanent bases in the UK.
This has driven demand for ADF’s services with the firm’s production fleet almost fully booked for this year already and customers booking its facilities up to seven months in advance, so proceeds from the placing will be used to buy more equipment.
Shares were placed at 50p each, giving the firm a market value of £37.8 million, and made a successful start popping to 55p on small volume in early trading.
