Anite is a global provider of hardware and software solutions, systems integration and managed services within its core markets of Wireless and Travel. I have a holding in my growth portfolio (epic code: AIE).
Anite released their interim results on 2 December. Revenue was up 3.3% to £49.0m and adjusted operating profit up 89% to £5.1m. A good turnaround, but on weak comparatives.
Adjusted EPS was up 117% to 1.3p, with reported EPS 0.1p compared to a loss last year of
(0.5)p. The interim dividend was increased by 9.6% to 0.63p.
Although group order intake was down 4.6% to £49.4m, it still produced a book to bill ratio
of 1.
Free cash flow was strong up from £3.8m last year to £6.3m. Following dividend payments of £3.7m and the net proceeds from the sale of the Travel Business less the acquisition of Xceed producing £20.8m the company's net cash position was increased from £6.1m at the end of last year to £29.8m. Placing the company in a healthy position, along with its strong FCF to develop the business.
Management commented on outlook for the rest of the year "...Given the recent momentum we
have seen across the Group and the specific opportunities identified for the
second half, the Board remains confident of meeting its full year expectations..."
A step in the right direction in returning the business to meaningful profits and at today's price of 84p, places the company on 15x expected earnings for this year, still below the industry median.
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