AdEPT has delivered a resilient H1 with Managed Services seeing 3% organic growth and supply chain delays reducing EBITDA margins by just 1%. H1 FCF of £4.4m amply covered cash interest paid of £1.1m and residual lease payments of £0.3m. Macro headwinds cause us to pull back FY23 EBITDA by 7% but the company will remain solidly cash generative and comfortably able to deal with forecast interest rate rises. As such the 17% FCF yield offers great value.
