Interim Management Statement

RNS Number : 6438Z

Anite PLC

11 March 2013

 



11 March 2013

Anite plc

Interim Management Statement

Anite plc ("Anite" or "the Group"), the leading provider of software solutions to the international wireless and leisure travel industries, today announces an Interim Management Statement covering the period from 1 November 2012 to 8 March 2013.

Trading

Overall Group trading in the quarter ended 31 January 2013 ("Q3") reflected what is, typically, a relatively quiet seasonal period for the business.  This contrasted with an unusually strong Q3 last year which was driven by high demand from Handset Testing customers investing in initial 4G LTE systems at the end of the 2011 budget year.  Specifically, in contrast to last year, we have seen a return to the normal position of customers taking time to release budgets at the start of the calendar year. 

Group revenue and adjusted¹ profit before tax for the nine months to 31 January 2013 were broadly in line with our expectations and ahead of the comparative period last year, despite the adverse currency translation impact which affected Network Testing in the first half.  As discussed at the half year, Group order intake remains behind that of last year, mainly reflecting the lumpiness of orders in Travel, which received some significant orders in the first half of the prior year.  Trading since the end of Q3 has continued these trends.  

The Handset Testing business continues to see growth in demand for both conformance and inter-operability testing products. The Propsim business, that was acquired on 31 January 2013, has performed well in its first month of ownership and integration is underway and progressing well. 

Trading in Network Testing and Travel in Q3 was encouraging with both businesses recording revenue and operating profits in the quarter in excess of the comparative period. 

Financial position

At 28 February 2013, the Group had net debt of £8.5m (30 April 2012 net cash of £16.9m; 31 October 2012 net cash of £16.8m).  This followed the acquisition of Propsim on 31 January which resulted in a net outflow of £25.0m.  The acquisition was partially funded by the draw-down of £17.7m of the Group's £20.0m revolving credit facility.  In addition, the interim dividend was paid on 15 February 2013 at a total cost of £1.6m.

¹ - Adjusted profit before tax is defined as profit for continuing operations before tax, share based payments, amortisation of acquired intangible assets, restructuring costs, other gains and losses and recycled hedge losses.

Outlook

Overall, the Board remains confident about the out-turn for the year as a whole and anticipates that full year adjusted profit before tax will be in line with market expectations.

Handset Testing will require a good performance in Q4 in line with historical seasonal trends.  The business is well positioned to achieve this, with continuing strong underlying industry growth drivers and an increased sales pipeline. 

Recent activity levels in Network Testing and Travel support those businesses achieving full year expectations although Travel requires around £1m of licence revenue from new and existing customers before the year end.  A significant pipeline of opportunities exists to meet this requirement.    

Commenting, Christopher Humphrey, Anite's Chief Executive said:

"Anite remains on track to deliver good growth this year.  As expected, we require a strong Q4 performance in order to achieve expectations for the year.  Our sales pipelines continue to increase and the fundamental growth drivers of our businesses are developing positively, despite economic headwinds.  Looking ahead, we remain encouraged by the Group's prospects for sustainable growth."

-     Ends    -

A conference call for analysts will be held today at 9.00am.

Please contact Giles Robinson at MHP Communications

on [e-mail] or 020 3128 8788 for dial-in details.

Anite plc                                                                                         www.anite.com

Christopher Humphrey, Chief Executive                                        01252 775 200

Richard Amos, Group Finance Director

MHP Communications                                                                

Reg Hoare / Giles Robinson                                                           020 3128 8100

 

END

 

 

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