Facilities by ADF – getting back to normal after the ‘strikes’ this £23m group offers some strong recovery potential, its shares are 20.50p, brokers TP 55p

17.09.2025

This morning Facilities by ADF (LON:ADF), the leading provider of premium serviced production facilities to the UK film and high-end television industry, announced its unaudited half year results for the six months to end-June.

After all the hassles of the writers strike and subsequent suspensions of production, the industry appears to be transitioning towards more normalised operating patterns following years of disruption, with reduced excess market capacity suggesting gradual pricing improvements.

Group revenue increased by 14% to £17.4m compared to £15.2m in H1-FY24, primarily due to the acquisition of Autotrak.

However, adjusted EBITDA decreased by 12% to £2.2m, down from £2.5m in the prior year.

The company reported a loss before tax of £2.0m, a 250% decrease from a loss of £0.8m in H1-FY24.

Basic loss per share was 1.04p compared to 0.75p.

An interim dividend of 0.3p per share was declared, down from 0.5p per share.

The Group’s underlying performance reflected a slower Q1 with momentum, and utilisation rates, building through into the second quarter.

In total, ADF supported some 48 high-profile productions across H1-FY25 including The Gentleman, Rivals, A Good Girls Guide to Murder, Industry, The Witcher, and Forsythe Saga.

Revenue for the 8 months to end-August was £25.7m, and the order book as of the same date stood at £14.1m.

The Business

The Facilities by ADF Group is the leading provider of premium serviced production facilities along with location services and ground protection equipment to the UK film and high-end television industry.

The Group serves customers in an industry that has experienced, notwithstanding the Strikes in 2023, significant growth in recent years, with additional demand driven by a material rise in the consumption of film and HETV content via streaming platforms such as Netflix, Disney+, Apple TV+, and Amazon Prime.

The UK film and TV industry has directly benefited during this growth due to the quality of its production facilities and studios, highly skilled domestic workforce, geography, accessibility to Europe, English language environment and strong governmental support.

Major US streaming companies have now set up permanent bases in the UK, with the UK now the film and TV industry's second-largest operation after North America.

Facilities by ADF's production fleet is made up of more than 800 technical vehicles, premium mobile make-up, costume and artiste trailers, production offices, mobile bathrooms, diners and school rooms.

To strengthen its position as a One-Stop-Shop for the Film and HETV industry, ADF acquired Location One, the UK's largest TV and film location service provider, in November 2022.

It further expanded in September 2024 by acquiring Autotrak Portable Roadways, a market leader in portable roadway solutions, diversifying the Group's offerings and customer base.

Management Comment

Recently appointed Executive Chairman Russell Down stated that:

"The first quarter of the year was shaped by the continuation of industry-wide production delays, with activity levels increasing in the second quarter.

Our market share remains strong.

The actions taken by the Board to drive efficiency and protect our balance sheet have ensured that we are well-positioned to navigate this environment.

Encouragingly, the momentum that built through the second quarter has continued into H2, with utilisation rates improving and market conditions beginning to normalise."

Broker’s View

Analyst Andrew Renton, Director of Research at Cavendish Capital Markets, considers that the group’s momentum is building up again.

Renton’s Target Price is a very healthy 55p.

His current year estimates to end-December look for £42.6m (£35.2m) revenues, with adjusted pre-tax profits of £2.1m (£0.2m), lifting earnings from 0.0p to 1.8p per share, with a confident showing of a 1.0p dividend.

My View

I like the feel of this £22.5m-capitalised company, with its shares now at 20.50p, which compares to the low of 13.50p scored in June.

At these levels I reckon that the risks are low while the upside potential looks good.

I now set a new Target Price for the shares at 26p.

(Profile 17.09.25 @ 20.50p set a Target Price of 26p)