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Keysight set on Anite

US electronic measurement giant Keysight Technologies has agreed to acquire Anite
July 1, 2015

The recently agreed takeover of Anite (AIE) by US-listed Keysight Technologies stole the thunder from these respectable full-year figures. The group - which tests and measures the performance of wireless devices, networks and equipment - posted a 47 per cent rise in operating profit and grew its net cash pile to £37m, despite making two acquisitions.

IC TIP: Hold at 127p

Anite has weathered a prolonged period of its customers consolidating or exiting the industry. Once again, it is benefiting from the rollout of high-speed '4G' networks, and mounting pressure on manufacturers to produce reliable, high-quality devices. Together with tight cost control, strong demand in China and the launch of an upgraded testing platform, those factors fuelled a 62 per cent rise in adjusted operating profit at the core device and infrastructure testing division. Similarly, underlying sales rose 11 per cent at the network testing division as mobile carriers invested in high-speed networks.

The group narrowed its focus on the wireless market, disposing of its travel business for £43m in May 2014. It also broadened its range of services by shelling out £21m for data analytics specialist Xceed and, more recently, application testing group Setcom.

Broker Panmure Gordon expects EPS of 6.2p in the year to April 2016 (FY 2015: 5.7p).

ANITE (AIE)
ORD PRICE:127pMARKET VALUE:£381m
TOUCH:126-127p12-MONTH HIGH:130pLOW: 69p
DIVIDEND YIELD:0.5%PE RATIO:33
NET ASSET VALUE:47p*NET CASH:£37m

Year to 30 AprTurnover (£m)Pre-tax profit (£m)Earnings per share (p)Dividend per share (p)
20119412.23.11.05
201212322.25.71.50
2013 (restated)11322.15.51.84
20141098.92.71.84
201511813.73.80.63†
% change+8+54+41+66

*Includes intangible assets of £107m, or 36p a share

†No final dividend due to takeover terms