Anite (AIE) is benefiting from a boom in 4G Long Term Evolution (LTE) device testing. Half-year sales related to that superfast mobile broadband technology increased 29 per cent year on year, to £20.2m, and now generate around half of revenue at the group's handset testing unit, which in turn saw adjusted operating profit increase 27 per cent to £11.4m.
Chief executive Christopher Humphrey also highlighted Anite's push into higher-margin interoperability (IOT) testing. That involves close working with operators and handset manufacturers in order to identify any glitches before the commercial launch of 4G. "AT&T, Verizon Wireless and China Mobile are among our customers," says Mr Humphrey. Indeed, IOT work generates some 40 per cent of handset testing sales, up from 36 per cent a year earlier. Network testing, meanwhile, fared less well with sales there having increased just 2 per cent, after adjusting for currency effects, although adjusted operating profit rose 10 per cent. The travel division, which provides enterprise resource planning software for tour operators, reported flat revenues of £8.9m, but underlying operating profit here rose 6 per cent to £1.6m.
Broker Panmure Gordon forecasts full-year adjusted pre-tax profit of £32.2m, giving EPS of 7.6p (from £27.2m and 6.7p in 2012).
ANITE (AIE) | ||||
|---|---|---|---|---|
| ORD PRICE: | 137p | MARKET VALUE: | £410m | |
| TOUCH: | 136.7-137p | 12-MONTH HIGH: | 151p | LOW: 84p |
| DIVIDEND YIELD: | 1.2% | PE RATIO: | 21 | |
| NET ASSET VALUE: | 33p* | NET CASH: | £16.8m | |
| Half-year to 31 Oct | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 56.2 | 8.52 | 2.10 | 0.38 |
| 2012 | 61.2 | 11.3 | 2.90 | 0.58 |
| % change | +9 | +33 | +38 | +53 |
Ex-div: 23 Jan Payment: 15 Feb *Including intangible assets of £69m, or 23p a share | ||||
