Updates

Facilities by ADF - Bouncing back from actor strikes

July 2024

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

I caught up with management post year end results. As had been flagged, following a bumper H1 when revenues were a record £21.8m, H2 was disrupted by the US actor and writer strikes. This left ADF scratching around to improve utilisation by taking on whatever dregs of work was available (mostly small domestic productions) generating H2 sales of £13m. It managed costs carefully by cutting its use of agency HGV drivers and suspending all non-essential costs. Cash was further preserved by delaying all its trucks and trailers on order. This fed through to a small drop in EBITDA to £7.3m (FY22A:£8m), consistent with a margin of 21%. Pretax profit was £0.9m. The strikes have now resolved and ADF has returned to normal utilisation. Cav ...

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