Facilities by ADF (AIM:ADF), a provider of premium serviced production facilities to the UK film and high-end television industry, reported revenue of £16.6m for the six months to 30 June, down from £17.4m a year earlier.
The company said the lower than anticipated first-half performance, combined with the current shape of its fourth-quarter pipeline, means it now expects full-year results to fall below current market expectations.
Adjusted EBITDA fell to £1.7m from £2.2m, hit by the revenue shortfall and operational deleverage, while the group swung to a pre-tax loss.
Net debt rose to £14.5m from £13.2m a year earlier, reflecting a deferred consideration payment for the Autotrak acquisition.
The core ADF business generated revenue of £9.4m, down from £10.8m, as UK film and HETV production spend fell 15.6% over the period, according to BFI data.
Location One and Autotrak both grew, to £3.3m and £3.9m respectively, underlining the resilience of the group's diversified model.
"The steps we are taking to integrate the businesses, sharpen our impact and drive growth are already bearing fruit, with our combined order book and pipeline for FY27 ahead of the prior year", said chief executive Nicola Pearcey.
Management expects the usual second-half weighting to continue, and the combined order book and pipeline for FY27, as at 7 September, stood 4.5% ahead of the equivalent point last year.
News Intelligence what this means for the company
Facilities by ADF has issued a profit warning after H1 revenue fell 4.6% to £16.6m, driven by a 15.6% collapse in UK film and high-end television production spend. The company now expects full-year results to miss market expectations, with adjusted EBITDA halving to £1.7m and net debt rising to £14.5m; management flagged a weak Q4 pipeline as a headwind, though it noted FY27 order book is 4.5% ahead of last year.
The core ADF business—which generated £9.4m of the £16.6m H1 revenue—is exposed directly to UK production spend volatility and has contracted sharply. While Location One and Autotrak grew, they are not yet large enough to offset the decline: together they contributed £7.2m, leaving the group dependent on a recovery in UK HETV production that management has not yet signalled will arrive in FY25.
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