Full Year Trading Update and Notice of Results

Facilities by ADF plc

29 February 2024

 

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: [phone]
Alma Strategic Communications Josh Royston Hannah Campbell	Tel: [phone] [e-mail]

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.

 

END