Half-year turnover and profits may have slipped modestly at Alternative Networks (AN.), but cash generation remained strong at £6.5m and two large deals were signed in the first quarter - they should boost second-half revenues. A 4p special dividend was also announced - add that in and the yield is 4.6 per cent.
The group provides voice and data services for business customers and the company increased its mobile subscriber base by 10 per cent in the period. This lifted the mobile unit's revenue by 5 per cent to £20.7m, although the uplift would have been about 11 per cent had it not been for the impact of lower mobile roaming rates brought about by EU regulatory changes. Predictably, fixed-line revenue slipped - from £19.3m to £17.5m - partly reflecting a steady migration to email and mobile phones, although the gross margin here edged up from 38 per cent to 40 per cent. Revenue was also lower in the Advanced Solutions data business, but this operation also managed to secure new orders which boosted the unit's order book by £1.6m to a record £3.5m.
Broker Investec Securities is maintaining its full-year forecasts at £14.6m for adjusted pre-tax profit, giving EPS of 23.1p (from £14.6m and 22.4p in 2012).
| ALTERNATIVE NETWORKS (AN.) | ||||
|---|---|---|---|---|
| ORD PRICE: | 345p | MARKET VALUE: | £163m | |
| TOUCH: | 345-355p | 12-MONTH HIGH: | 355p | LOW: 198p |
| DIVIDEND YIELD: | 3.4% | PE RATIO: | 15 | |
| NET ASSET VALUE: | 72p** | NET CASH: | £15.3m | |
| Half-year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 57.4 | 5.63 | 9.50 | 4.00 |
| 2013 | 55.3 | 5.54 | 9.80 | 4.40* |
| % change | -4 | -2 | +3 | +10 |
Ex-div: 26 Jun Payment: 15 Jul *Excludes 4p special dividend **Includes intangible assets of £25.5m, or 54p a share | ||||
