Evolving strategies and questionable adjustments
Companies need to adapt and for several small companies covered here that appears to be essential if they hope to be able to continue to grow. We also question the appropriateness of one company’s accounting adjustments, although the shares still look reasonable value as our update reveals.
Adept Technology: change of strategy needed?Adept Technology (LON:ADT), a provider of managed IT services issued a long trading update for its financial year ending 31 March 2021. We had expected this business to prove a little more resilient than it has been given the growing dependence on reliable IT and communications over the pandemic and its public sector exposure, but perhaps that’s a little harsh in such a challenging year. Revenue and EBITDA are set to be in-line with previous broker guidance provided in February 2021 – revenue £57m (-7.6%) and adjusted EBITDA of £10.0m (-14.5%) respectively. Cash flow remained strong with…