29 February 2024
Facilities by ADF
plc
("ADF",
the "Company" or the "Group")
Full year trading
update
Notice of
Results
Facilities by ADF, the leading
provider of premium serviced production facilities to the UK film
and high-end television ("HETV") industry, today provides an update
on trading in respect of the full year ended 31 December 2023
("FY23").
ADF delivered another strong
financial performance in FY23 with revenue expected to be £34.8m
(FY22 £31.4m) and adjusted EBITDA of £7.3m (FY22
£7.9m)(1) and an adjusted profit after tax of £1.1M
(FY22 £4.8M). This performance reflects a record first half of the
year, working on larger and longer productions following strong
demand for its services from global streaming
providers.
As previously announced and
following the onset of the USA Writers (Writers Guild of America)
and Actors (Screen Actors Guild - American Federation of Television
and Radio Artists) strikes (the "Strikes") in May 2023, several
large productions that ADF was working on stopped filming
immediately impacting revenue levels in the second half of FY23
("H2-FY23").
In response to the Strikes, the
Group took several mitigating actions to maximise profitability in
H2-FY23, including securing shorter duration domestic productions,
and cutting the use of more expensive agency drivers which enabled
the Group to price services more competitively and win a larger
share of available business.
Overall, ADF supported 84 high-profile productions in FY23 with an average revenue per
production of £302k (FY22 - £381k). Notable
productions included The Crown season 6, Slow Horses, Star Wars
Andor, The Gentleman, Rivals and The Diplomat.
Outlook
Following the end of the Strikes in
November 2023, and the continued growth in demand for ADF's
services as evidenced by the current order book, the Company
expects the financial performance of H1-FY24 to be significantly
ahead of the H2-FY23.
Notwithstanding the end of the
Strikes, the impact on the film and HETV industry has carried on
into H1-FY24 with film and TV producers having to reorganise the
schedules of all relevant parties (studios, cast, crew, ancillary
services etc), which is proving challenging at short notice. This
has meant there will be a one-off reduction in utilisation in
H1-FY24 before returning to a full second half, more in line with
pre-strike levels. The Board will provide further guidance in this
regard on publication of its audited full year FY23
results.
Notice of results
The Group expects to announce its
audited FY23 results in April 2024.
Marsden Proctor, CEO, said:
"Our
performance in FY23 demonstrates the Group's resilience with a
strong first half countered by the first joint strike of Hollywood
actors and writers in over 60 years. The effects of the strikes
will continue to be felt through the first half of the current
year, but we will carefully manage our cost base during the period.
The long-term market dynamics remain very much in ADF's favour with
continued high levels of investment in the UK HETV industry and the
Board is confident that we will return to pre-strike order levels
and beyond as conditions normalise."
(1) Company compiled market
expectations, prior to this announcement, is for FY23 revenue of
£35.0m and FY23 adjusted EBITDA of £7.5m.
For
further enquiries:
Facilities by ADF plc
Marsden Proctor, Chief Executive
Officer
Neil Evans, Chief Financial
Officer
John Richards, Chairman
|
via Alma Strategic
Communications
|
Cavendish Capital Markets Limited (Nomad and
Broker)
Ben Jeynes / George Lawson -
Corporate Finance
Michael Johnson - Sales
|
Tel: +44 (0)20 7220 0500
|
Alma Strategic Communications
Josh Royston
Hannah Campbell
|
Tel: +44 (0)20 3405 0205
facilitiesbyadf@almastrategic.com
|
This announcement contains inside information for the purposes
of the UK Market Abuse Regulation and the Directors of the Company
take responsibility for this announcement.