September 25, 2022

by Anthony O’Goryinoff

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AdEpt Technology Group PLC said on Tuesday that global chip shortages are impacting projected business growth and inflationary pressures are expected to increase product and operating costs in FY2023.

The UK IT services provider also said that it is reinstating the interim dividend payment and the board has declared an interim dividend of 2.50 pence per share. The company said this was due to a strong underlying recurring revenue and margin stream, combined with operating efficiency, generating strong organic cash flow.

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The company said the cash generation so far was in line with management’s expectations and was making progress on its strategy to strengthen the balance sheet.

AdEpt said it was working closely with its partners to reduce supply chain delays and escalating costs where possible, particularly those associated with connectivity and telephony fees.

The company said it had cushioned the business to some extent from inflationary pressures within its supplier base.

“The underlying demand for digitization and cloud-based services remains strong, as businesses and governments seek efficiency gains, and we expect growth in the Group’s markets to return to anticipated levels as supply chain disruptions ease and The economy returns to more normal business terms,” ​​the company said.

The stock is down 6.50 pence, or 5.4%, at 115 pence.

Anthony O. Write to Goriainoff at [email protected]

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