- First half revenues top record half last year
- Second half order book full with bigger projects
- Growth investments set to pay off
Film and high-end TV production services provider Facilities by ADF (ADF:AIM) posted a positive trading for the first six months of 2022 and said it had ‘excellent’ visibility for the remainder of the year with its order book completely full.
Despite the positive update ADF shares slumped 11% to 53p, their lowest level since coming to the market at the start of the year.
ACTION-PACKED
Revenue for the half to June was £12.6 million, 9% ahead of last year’s £11.5 million which was exceptionally strong as many large productions had to catch up from Covid restrictions.
In a first half which chief executive Marsden Proctor described as ‘manic’, the firm supported 46 productions including the latest season of The Crown and new drama series The Sandman.
Given the average production size was smaller than last year, fleet mobilization costs were higher but the second-half order book consists of mostly larger-scale projects meaning the firm is on track to meet its full year financial targets.
The combined UK spend on film and high-end TV productions in the 12 months to June was a record £5.7 billion, with inward or overseas investment productions accounting for over 80% of the total.
GROWTH STORY
Thanks to its market-leading position the firm is able to pick the highest-value contracts available, but in order to keep pace with the rapid expansion of UK film and TV production it needs to invest.
As well as adding more vehicles to its fleet, the firm has been fortunate enough to acquire an adjacent property to its Brynmenin factory, allowing it to double the capacity of new vehicle manufacturing and fit-outs by the end of the year.
It has also moved its operational base to Longcross in Surrey, close to Pinewood, Shepperton and Elstree studios and literally over the road from a new studio which key customer Netflix has leased for 30 years.
With the amount of studio space in the UK set to almost double from six million square feet to 11 million square feet in the next few years, and with its strong customer relationships with major content producers, the firm has a huge market opportunity ahead of it.
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