Facilities by ADF Reports Widened H1 Loss Amid Film Industry Headwinds

Segment performance: CAD Services, Location One and Autotrak

• CAD Services revenue: £10.8m (H1-FY24: £11.5m). The core facilities arm faced pricing pressure and a slow Q1, offset by better Q2 momentum.
• Location One revenue: £3.1m (H1-FY24: £3.6m). Competition remained intense; the team is focusing on service and margin discipline.
• Autotrak revenue: £3.5m (H1-FY24: £0.0m). Management says Autotrak has performed well, supported by its more diversified customer base across construction, festivals and events.

Across H1-FY25, ADF supported 48 productions, up from 38 a year ago, including The Gentleman, Rivals, A Good Girls Guide to Murder, Industry, The Witcher and Forsythe Saga. Average revenue per production fell to £225k from £304k, reflecting a different mix of jobs and tighter budgets. Market share by number of productions rose to 32% from 23% in H1-FY24.

Operational discipline: fleet, utilisation and capex

To conserve cash and protect margins, around 20% of the fleet was placed into temporary storage. In total, 154 assets in the core ADF fleet were decommissioned to lower maintenance and compliance costs, while preserving the capacity to scale back up.

Utilisation rates improved through the period – 34% in Q1 rising to 47% in Q2, excluding the decommissioned fleet – and have increased further post period end, according to the company.

Capital expenditure was deliberately tight. The Group invested £2.8 million, of which £2.3 million was Autotrak buying 2,000 aluminium panels to lift capacity by 12%, financed via hire purchase. Capex for the rest of 2025 is expected to be very limited, apart from a prototype Executive Single Artiste Trailer for the top end of feature films. ADF also had 33 units sitting in assets under construction at a value of £3.2 million, fully paid and due to transfer to fixed assets as fit-out completes in FY25.

Cash, debt and dividend

Net debt excluding IFRS 16 leases reduced to £13.2 million at 30 June 2025 from £13.8 million at year end. Hire purchase liabilities fell to £14.6 million. Cash was £1.4 million, and a £1.0 million overdraft facility agreed in April 2025 was undrawn at period end.

The Board declared an interim dividend of 0.3p per share, payable on 30 January 2026 to shareholders on the register on 9 January 2026. The policy remains progressive, with the Board intending to pay an increased final dividend subject to H2 performance.

Order book, pipeline and outlook for FY25

Trading momentum has continued into H2. Group revenue for the eight months to 31 August 2025 was £25.7 million. The order book at 31 August stood at £14.1 million, with £10.6 million expected to be delivered in FY25.

The weighted pipeline for FY25 at 31 August totalled £2.2 million (gross: £5.0 million), with four months left to win and execute additional work. Lead times are shorter than pre-strike norms, but management expects pricing to recover as excess capacity eases. The Board currently expects full-year performance to be in line with market expectations and for the Group to be cash generative in FY25.

Leadership changes and governance

There has been leadership turnover. Russell Down became Chairman in February 2025 and moved to Executive Chairman in July 2025 following the CEO stepping down. Mark Adams joined as Non-Executive Director and Audit and Risk Chair in February 2025. Post period end, James Long was appointed Chief Operating Officer and to the Board, while CFO Neil Evans will leave the Group on 31 October 2025. A search is underway for a permanent CEO and CFO.

The Board states governance structures and leadership depth are in place to maintain operational continuity during the transition.

Why this update matters to investors

There are two stories here. First, the hangover from industry strikes and budget caution weighed on pricing, utilisation and margins, which is why EBITDA fell and the loss widened. Second, activity and utilisation are clearly improving, the order book is rebuilding, and Autotrak is adding resilience and diversification.

Positives to note

• Revenue growth of 14% with Autotrak contributing strongly.
• Utilisation and momentum improved through Q2 and into H2.
• Market share by number of productions up to 32%.
• Net debt (ex IFRS 16) nudged lower; overdraft still undrawn.
• Dividend maintained, albeit at a lower interim rate.

What keeps the pressure on

• Gross margin down to 33.0% and Adjusted EBITDA margin at 12.6% due to pricing and wage inflation.
• Interest costs higher from leasing and acquisition-related deferred consideration.
• Leadership changes add moving parts during a market recovery.

What to watch next

• Utilisation and pricing in H2-FY25 – signs point to normalising demand, but conversion is key.
• Order book conversion – £10.6m expected to be delivered in FY25 and a weighted pipeline of £2.2m.
• Further cost discipline – potential asset disposals and the impact of decommissioning on margins.
• Integration synergies across ADF, Location One and Autotrak – cross-sell and shared operations.
• Cash generation – the Board expects FY25 to be cash generative; watch working capital and capex control.

Josh’s take

This is a credible stabilisation half in a tough market. The widening loss will grab the headlines, but the trend through the quarter, the stronger H2 run-rate, and a rebuilding order book are the more important signals. Autotrak looks a smart bolt-on that balances ADF’s exposure to film and HETV cycles.

If utilisation, pricing and cash generation keep moving the right way, FY25 can mark the turn. The task now is execution – convert the pipeline, protect margins, and land those integration benefits while bedding in a new top team.