Northland Capital raises AdEPT Telecom price target

NORTHLAND CAPITAL PARTNERS VIEW on DirectorsTalk: AdEPT continues its transition from a provider of fixed-line telephony services to an integrated communications services provider.  In its April 5th Trading Update AdEPT reported strong performance for the year to March 31st 2016, indicating EBITDA of £6.10m, +33%YoY, ahead of our outlook of £5.9m; reduced net debt at £(6.2)m (previous NCP estimate £(7.0)m; and, notably, an increase in recommended year-end dividend from 3.00p/share to 3.50p/share, ahead of our outlook, to be paid in early October 2016.  This takes the proposed full year dividend to 6.50p/share. Based on the medium-term outlook for AdEPT’s integrated communications offering we have raised our price target from 285p to 300p
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