The IT services company said it delivered a resilient performance in the fourth quarter, despite the ongoing challenges of the COVID-19 pandemic, and that sustained customer demand meant it did not need to use the UK’s furlough scheme during the quarter unlike in Q1 and Q2.
As a result of the pandemic and in line with market expectations, the board confirmed that no final dividend will be proposed in FY21. The board will provide an update on the company’s dividend policy alongside its results for the six months to end September 2021.
In February, AdEPT reinstated its earnings guidance for the year. It expects to release its full-year results in July 2021.
The company also announced today that it signed a new enlarged banking facility agreement with NatWest and Bank of Ireland, to support its growth ambitions with a declared intention to acquire one or two complementary, earnings enhancing, companies each year. It plans to strengthen its cloud-centric strategic services and its presence in key vertical markets.
The three-year agreement, extendable by one year, will provide the company with up to £70mln senior debt, comprising a £35mln revolving credit facility, a £15mln term loan, and a £20mln accordion facility.
The facility replaces a £40mln revolving credit facility, which was due to expire in February 2022.
The company said it remained confident about its prospects in the new financial year and beyond.
“We believe that the pandemic has served to reinforce the importance of our core competences and that there is increasing demand for the solutions we provide,” said chairman Ian Fishwick.