Interim Management Statement

RNS Number : 3258I

Anite PLC

10 March 2010

 



10 March 2010

Anite plc

Interim Management Statement

Anite plc ("Anite" or "the Company"), 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 2009 to 9 March 2010. 

Trading 

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

Trading in the quarter ended 31 January 2010 ("Q3") was satisfactory and in line with the Board's expectations for the year as a whole. Order intake in the quarter was up, with both Travel and Wireless ahead of the same period last year.  The positive order trend in Q3 has continued into February with order intake ahead of that achieved in February 2009. 

In Wireless both revenue and adjusted operating profit in Q3 were up year on year reflecting slightly improved market conditions in both sides of this business. 

In Travel, revenue and adjusted operating profit in Q3 were down year on year, as anticipated, due to the previously reported customer losses of last financial year. 

As a result of these movements, for the Group as a whole, revenue and adjusted operating profit for Q3 were down on the same period last year.  For the financial year to date, revenues and profits are down on the same period last year as anticipated and for the same reasons as previously reported at the time of the interim results issued in December 2009.

LTE update

The Mobile World Congress held in Barcelona in February 2010 provided further evidence that the outlook for the LTE testing market is improving.  This trend is being reflected in both Anite's LTE order pipeline and also in revenues, with Q3 LTE revenues ahead of those achieved in the first six months of the year.

Anite's change of LTE product strategy, announced in December 2009, has also been well received by customers. The first production batch of the commercialised Anite 9000 Mobile Test Accelerator was received in late February with further units expected in March and April.  Revenues for LTE products are expected to increase accordingly in the last two months of the financial year compared to the recent run rate. 

Full year outlook

The Board's expectation for the full year outlook is unchanged since the interim results.  However, as previously reported, in this financial year, performance in the fourth and final quarter is more than usually critical to the outturn for the year as a whole. This reflects the importance of the timing and receipt of orders over the year end period across all of our businesses, including the ramp up of the new LTE market.

Financial position

Anite continues to report a robust financial position. Net cash as at 28 February 2010 was £23.7m (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 which as at 28 February 2010 stood at £22.9m (£22.8m as at 31 October 2009).  The Board has recently concluded an analysis of the swap and has decided to close out the position to provide certainty of the future exposure.  As of 9 March 2010, one third of the exposure has been crystallised and it is anticipated that the remainder of the position will be closed over the next few months.  Cash settlement of the crystallised position will occur on 31 October 2011. 

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

"Our change of LTE product strategy announced in December has been well received by our customers.  The outcome for the year as a whole is heavily dependent however on the timing of LTE and other orders received and shipped in Anite's last two months of the financial year.

"Overall we believe that the market for our new LTE product range continues to strengthen and the outlook for our travel system is encouraging.  The investments we are undertaking this year 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

 

 

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