Anite's performance has been transformed, thanks to a robust performance from the software group's wireless business, which was more than enough to offset ongoing weakness in its travel division.
Demand for handset testing was especially robust, reflecting a near four-fold increase in revenue from fourth-generation (4G)-related business to £16.7m. But there was also a revival in demand for third-generation (3G)-products, mainly as a result of increased spending by customers who had previously deferred investment decisions. In addition, Anite benefited from a move by mobile operators to invest further in high-speed packet access, a mobile broadband technology package designed to boost the performance of existing 3G networks. Operating profits from handset testing almost trebled to £10m on a 39 per cent rise in revenues to £49.6m.
Anite also provides software for travel companies, and adjusted operating profits fell 25 per cent to £4.2m, reflecting the tough conditions in the leisure travel sector that saw some of Anite's customers merging and others going bust. However, there are signs that conditions are improving, notably a 17 per cent rise in signed orders to £34m and the business also secured a multi-year contract with TUI Travel for the use of Anite's @comRes reservation system. Overall, group order intake grew 42 per cent to £116m.
Northland Capital Partners is forecasting current year adjusted pre-tax profits of £17.25m and EPS of 3.97p (2011: £16m/4p).
| ANITE (AIE) | ||||
|---|---|---|---|---|
| ORD PRICE: | 76p | MARKET VALUE: | £227m | |
| TOUCH: | 75-76p | 12-MONTH HIGH: | 78p | LOW: 34p |
| DIVIDEND YIELD: | 1.4% | PE RATIO: | 25 | |
| NET ASSET VALUE: | 27p* | NET CASH: | £27.7m | |
| Year to 30 Apr | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2007 | 29.0 | 24.0 | 5.30 | 0.80 |
| 2008 | 92.8 | 9.5 | 1.90 | 0.88 |
| 2009 | 90.1 | 6.4 | 1.50 | 0.05 |
| 2010 | 78.8 | -4.0 | -1.50 | 0.95 |
| 2011 | 93.7 | 12.2 | 3.10 | 1.05 |
| % change | +19 | - | - | +11 |
Ex-div: 14 Sep Payment: 25 Oct *Includes intangible assets of £78m, or 26p a share | ||||
