Chief executive Christopher Humphrey also highlighted Anite's push into higher-margin interoperability (IOT) testing. That involves close working with operators and handset manufacturers in order to identify any glitches before the commercial launch of 4G. "AT&T, Verizon Wireless and China Mobile are among our customers," says Mr Humphrey. Indeed, IOT work generates some 40 per cent of handset testing sales, up from 36 per cent a year earlier. Network testing, meanwhile, fared less well with sales there having increased just 2 per cent, after adjusting for currency effects, although adjusted operating profit rose 10 per cent. The travel division, which provides enterprise resource planning software for tour operators, reported flat revenues of £8.9m, but underlying operating profit here rose 6 per cent to £1.6m.
Broker Panmure Gordon forecasts full-year adjusted pre-tax profit of £32.2m, giving EPS of 7.6p (from £27.2m and 6.7p in 2012).
|ORD PRICE:||137p||MARKET VALUE:||£410m|
|TOUCH:||136.7-137p||12-MONTH HIGH:||151p||LOW: 84p|
|DIVIDEND YIELD:||1.2%||PE RATIO:||21|
|NET ASSET VALUE:||33p*||NET CASH:||£16.8m|
|Half-year to 31 Oct||Turnover (£m)||Pre-tax profit (£m)||Earnings per share (p)||Dividend per share (p)|
Ex-div: 23 Jan
Payment: 15 Feb
*Including intangible assets of £69m, or 23p a share
Anite's shares have risen more than 40 per cent since the start of the year and a forward PE ratio of 18 is hardly a bargain. That said, the group is generating impressive growth on the back of 4G-related work and there's no obvious reason why Anite won't keep up the pace. On that basis, expect more upside - Panmure's price target stands at 165p. Buy.
Last IC view: Buy, 125p, 3 Jul 2012