Ann: Trading Halt, page-12

You've done a really interesting analysis for the cost of debt.
Some strange covenants regarding churn rate* and capex.
But it could be fine for me, if they can repay this debt quite fast via their free cash flow.

Not very clear what will be their free cash flow. They state that their free cash flow will be 17.9 m (pre non recurring costs), but it corresponds to the cash flow from operation corrected of non recurring cost. So, this 17.9 m is pre-Capex and they do not give figures for past ADT Capex.

What also looks strange to me is the really low cost of this acquisition : $45 m for a business which generates $25 m of EBITDA (Sept YE) and with 68 % of revenues considered as recurring.
According to my estimates, the acquisition also includes the debt of ADT (estimated at $7 m).
A bit surprising that they do not disclose figures for ADT during the last 2 to 3 years, which would give an idea of the growth of the business.

* would be good to compare with the historical churn rate.