The gradual roll-out of 4G Long Term Evolution (LTE) wireless networks across the globe is driving robust earnings and sales growth for Anite (AIE) - it's focused on testing the networks and mobile devices that will eventually use it.
Indeed, it's Anite's handset testing division where most revenue growth is being generated at present - reflecting the rush to build newer and better smartphones. Divisional revenues grew an impressive 14 per cent year-on-year, 10 per cent of which was organic. Anite's other two divisions, network testing and travel, fared less well - sales were flat and down 3 per cent, respectively. Although both delivered margin growth and profits grew modestly at the two divisions in the period. Moreover, management expects LTE 4G roll-outs to drive mid to high single-digit revenue growth at the network testing business. That's because just 100m mobile users currently use 4G LTE networks, compared to 6.5bn mobile phone users globally.
Broker Canaccord Genuity expects group sales to reach £155.8m in 2014, generating adjusted pre-tax profit of £37.6m and giving adjusted EPS of 9p (from 8.3p in 2013).
ANITE (AIE) | ||||
|---|---|---|---|---|
| ORD PRICE: | 133p | MARKET VALUE: | £400m | |
| TOUCH: | 132-133p | 12-MONTH HIGH: | 163p | LOW: 110p |
| DIVIDEND YIELD: | 1.4% | PE RATIO: | 20 | |
| NET ASSET VALUE: | 36p* | NET DEBT: | 1% | |
| Year to 30 Apr | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 90.1 | 6.4 | 1.5 | 0.05 |
| 2010 | 78.8 | -4.0 | -1.5 | 0.95 |
| 2011 | 93.7 | 12.2 | 3.1 | 1.05 |
| 2012 | 123 | 22.2 | 5.7 | 1.50 |
| 2013 | 133 | 26.7 | 6.8 | 1.84 |
| % change | +8 | +20 | +19 | +23 |
Ex-div: 2 Oct Payment: 29 Oct *Includes intangible assets of £98.7m, or 33p a share | ||||
