Year End Trading Update

RNS Number : 2411M

Anite PLC

20 May 2010

 



20 May 2010

Anite plc

Year End Trading Update

Anite plc ("Anite" or "the Group"), the leading provider of software solutions to the international wireless and leisure travel industries, today announces a trading update for its year ended 30 April 2010. 

Revenue and adjusted profit* for the year as a whole are expected to be in line with the Board's and consensus market expectations.  As anticipated, revenues for LTE products increased in the last two months of the financial year with LTE products accounting for 21% of Q4 revenues in Handset Testing.  Group order intake was up nearly 5% year on year with a book to bill ratio of just over 1 times.

The year end financial position was robust.  Net cash as at 30 April 2010 was £29.8m (31 October 2009: net cash of £26.0m). The reported level of net cash is before taking account of the liability on the Group's currency swap.  As announced at the time of the Interim Management Statement issued in March 2010, the Board decided to close out the position to provide certainty of the future exposure.  The entire exposure had been crystallised by the year end at a maximum cost of £22.6m of which £1.0m was paid out in the year with the remaining £21.6m due to be paid on 30 November 2011.  The method used to close the position means that there could be a small reduction in the final liability from this maximum if the Euro weakens significantly against Sterling over the remaining 18 month period.   

Following the increasing market acceptance of LTE as the industry standard for 4G, the Board has reviewed the potential of WiMAX as the alternative competing standard.  The Board has concluded that WiMAX technology will be a minor part of the market and hence has decided to close Anite's business in this area.  Accordingly, a £6.7m non-cash impairment charge and a £0.3m exceptional closure cost provision will be made in the accounts for the year ended 30 April 2010.  In the year ended 30 April 2010, Anite's WiMAX business made a loss of £0.1m on revenues of £1.1m.  

Anite intends issuing its results for the year on 6 July 2010.

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

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

"As expected Anite had a good finish to the financial year in both the Wireless and Travel businesses.  The new product investments we are undertaking are building strong foundations for future profitable growth."

- Ends -

Anite plc	www.anite.com
Christopher Humphrey, Chief Executive	01252 775200
Richard Amos, Group Finance Director
Hogarth	020 7357 9477
Reg Hoare/Sarah MacLeod

 

END

 

 

TSTKKCDDDBKBBPD