Alternative Networks (AN.), a provider of managed voice and data services to business customers, returned to growth in the second half. After falling 4 per cent in the first six months, revenue in the final period was up 3 per cent on the year before, leaving annual turnover and profits little changed. And, still laden with cash, management have promised to grow the dividend faster, too.
Standout performers were the advanced solutions and mobile divisions, which between them account for 70 per cent of group revenue. Second-half sales at the former were up 14 per cent on the year before, and 12-month sales rose 4 per cent at the latter. That helped offset the ongoing decline in fixed-line telephony services, where revenue fell 9 per cent year-on-year. Importantly, cash generation remained strong, and management plan a double-digit increase in the dividend both this financial year and next.
Investec Securities expects adjusted pre-tax profit of £15.3m in 2014, giving adjusted EPS of 24.1p (from £14.5m and 22.9p in 2013).
ALTERNATIVE NETWORKS (AN.) | ||||
|---|---|---|---|---|
| ORD PRICE: | 395p | MARKET VALUE: | £193m | |
| TOUCH: | 387-395p | 12-MONTH HIGH: | 407p | LOW: 252p |
| DIVIDEND YIELD: | 3.3% | PE RATIO: | 19 | |
| NET ASSET VALUE: | 72p* | NET CASH: | £17.2m | |
| Year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 89.7 | 7.11 | 12.0 | 5.10 |
| 2010 | 96.2 | 9.24 | 15.7 | 6.10 |
| 2011 | 117 | 9.36 | 15.0 | 10.0 |
| 2012 | 115 | 12.7 | 22.1 | 11.5 |
| 2013 | 114 | 12.5 | 21.2 | 13.0** |
| % change | - | -2 | -4 | +13 |
Ex-div: 18 Dec Payment: 31 Jan *Includes intangible assets of £24.9m, or 51p a share **Excludes special dividend of 4p | ||||
