After two on weakness in its mobile handset testing division, Anite's half-year results limped in just in line with analysts' sales forecasts. Profits beat some estimates, thanks to a return to the black from its local government division, and a 37 per cent profit increase at the travel unit. But the group's disparate nature is just as important as its individual performance. Anite's chief executive, Steve Rowley, has now made public what was previously an open secret - the need for "strategic alternatives" to reduce the discount the market is placing on its conglomerate structure.
The discount could also reflect disappointment that the public sector or travel divisions haven't been sold sooner - although the idea of focusing on wireless is less appealing now than a year ago, despite a solid performance in testing wireless networks. With and , consolidation prospects in the public sector IT market seem higher. Travel's strong performance could elicit a buyer, too. But that may not be enough to offset the effect of analysts' downgrades, with limited visibility on handset testing contributing to a muted outlook.
Panmure Gordon lowered its full-year EPS forecast to 5.04p and to 5.72p in 2009 (5.68p in 2007).
Anite (AIE) | ||||
|---|---|---|---|---|
| ORD PRICE: | 42p | MARKET VALUE: | £ 148m | |
| TOUCH: | 42-42p | 12-MONTH HIGH: | 86p | LOW: 39p |
| DIVIDEND YIELD: | 2.0% | PE RATIO: | 12 | |
| NET ASSET VALUE: | 18p* | NET DEBT: | 36% | |
| Half-year 31 Oct | Turnover (£m) | Pretax profit (£m) | Earnings per share (p) | Net div per share (p) |
|---|---|---|---|---|
| 2006 | 72.0 | 9.74 | 2.1 | 0.250 |
| 2007 | 79.1 | 4.44 | 0.9 | 0.275 |
| % change | +10 | -54 | -57 | +10 |
Ex-div:05 Mar Payment:28 Mar *includes intangible assets of £108m or 31p per share | ||||
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