AdEpt Technology Business Growth Hurt by Shortages, Inflation to Affect FY 2023 Costs – MarketWatch

By Anthony O. Goriainoff

AdEpt Technology Group PLC said Tuesday that anticipated business growth was being hurt by global chip shortages and that inflationary pressures are expected to increase product and operational costs in fiscal 2023.

The U.K. IT services provider also said it was reinstating interim dividend payments with the board declaring an interim dividend of 2.50 pence a share. The company said this was due to a strong underlying recurring revenue and margin stream, combined with operational efficiency, generating strong organic cash flow.

The company said that cash generation to date was in line with management's expectations and that it was making progress on its strategy to strengthen the balance sheet.

AdEpt said it was working closely with its partners to mitigate the supply chain delays and that where possible it was passing on cost increases, particularly those linked to connectivity and telephony charges.

The company said this cushioned the business in part from the inflationary pressures within its supplier base.

"Underlying demand for digitization and cloud-based services remains strong, as businesses and government continue to seek efficiency benefits, and we expect growth in the group's markets to return to anticipated levels as the supply chain blockages ease and the economy returns to more normal trading conditions," the company said.

Shares down 6.50 pence, or 5.4%, at 115 pence.

Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com

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AdEpt Technology Business Growth Hurt by Shortages, Inflation to Affect FY 2023 Costs - MarketWatch