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AdEPT continues managed services transition
Firm’s first-half numbers show a further move away from the traditional telephony market
Managed services player AdEPT has updated investors with further signs that the business is continuing its transition from telephony towards a managed service-driven operation.
The firm shared first-half numbers for the six months ended 30 September, with revenues remaining largely flat, and global supply chain issues playing their part. Adjusted profit after tax was also similar to the level reported at the end of FY22, at £3m.
There were positive signs of transition, with 3% growth in cloud-centric strategic services, and revenues there climbing by £0.5m to £15.1m. That 3% organic increase in managed service revenue means that 89% of group revenues are now coming from those sales, which has continued to replace some of the legacy telephony business that the company is determined to move away from.
Further evidence of a shift could be seen in the 9% increase in VoIP revenues as the firm helped customers move away from legacy telephony products. There was also a 17% climb in AdEPT Cloud Services being consumed by customers.
The firm is also generating slightly more income from public sector and healthcare customers, with that percentage of revenue rising to 50%, compared to 48% in last year’s FY results.
AdEPT Group chairman Ian Fishwick said that as the organisation looked ahead, there were factors impacting the busines outside of its control, but it would be sticking to its three-pronged strategy to ensure the business continued to grow its managed services position.
The strategy that is being followed relies on organic growth, reducing gearing and making sure it has the right structure.
“One AdEPT, which lies at the heart of the group’s growth strategy, providing high levels of operational visibility and a scalable platform for cross-selling, is now used by 100% of our staff members, with its tooling enabling the group to balance workforce skills, share knowledge and distribute tasks across unified teams,” said Fishwick.
The firm highlighted a strategic alliance with Canon, its accreditation as a Sage Intact partner and its success in unlocking some of the Department for Education £150m fund as some of the reasons investors should feel good about the future.
Fishwick added: “While headwinds remain, constraining organic growth, the group has made good strategic progress and there remains a strong pipeline of opportunities across the public and private sectors, driven by macro technology market trends, and helped by specific government initiatives relating to education. The long-term prospects for AdEPT remain as strong as ever.”