Anite reported a robust full-year performance, driven by solid demand for mobile phone handset testing systems. This helped to boost group operating profit by 64 per cent to £28.8m, while the operating margin jumped from 19 per cent to 24 per cent. What's more, given the growing demand for mobile devices, then earning upgrades look likely – that leaves the shares looking attractive, despite the hefty rating.
It was demand for the latest 4G LTE (Long Term Evolution) testing system that turned out to be the main profit driver, and the potential for further growth here is significant. In fact, management reckons that, out of the 6bn mobile phone subscriptions globally, just 17m use 4G. More widely used 2G and 3G testing systems were also in demand, and revenue from the wireless division now contributes 84 per cent of group turnover – up from 79 per cent. Anite also provides reservation and administration systems for travel agents and operating profit here rose 10 per cent to £4.6m, while the order book rose from £63.2m to £89.6m.
Broker Peel Hunt expects adjusted pre-tax profit for 2013 of £33.5m, giving EPS of 7.8p (2012: 6.7p).
| ANITE (AIE) | ||||
|---|---|---|---|---|
| ORD PRICE: | 125p | MARKET VALUE: | £374m | |
| TOUCH: | 125-126p | 12-MONTH HIGH: | 132p | LOW: 57p |
| DIVIDEND YIELD: | 1.2% | PE RATIO: | 22 | |
| NET ASSET VALUE: | 31p* | NET CASH: | £16.9m | |
| Year to 30 Apr | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 92.8 | 9.50 | 1.90 | 0.88 |
| 2009 | 90.1 | 6.40 | 1.50 | 0.05 |
| 2010 | 78.8 | -4.00 | -1.50 | 0.95 |
| 2011 | 93.7 | 12.2 | 3.10 | 1.05 |
| 2012 | 123 | 22.2 | 5.70 | 1.50 |
| % change | +31 | +82 | +84 | +43 |
Ex-div: 26 Sep Payment: 23 Oct *Includes intangible assets of £70m, or 23p a share | ||||
