Trading Statement

RNS Number : 1482I

Anite PLC

14 November 2008

 



Embargoed until 7.00am

14 November 2008

Anite plc

Half Year Trading Update

Anite plc ('Anite' or 'the Company'), the international software and solutions company, announces a trading update for the six months ended 31 October 2008. 

Trading*

The Company has performed well in the first half with underlying trading ahead of last year and in line with the Board's expectations. 

In Wireless, overall revenues were down about 8% year on year but up sequentially by 5%.

Overall operating profits** were up significantly with operating margins rising to over 25%. This improvement was the result of the cost cutting actions taken in Handset Testing, a strong performance in Network Testing and the benefits from the stronger euro and US dollar.

In Handset Testing, orders in the period were down overall, reflecting an anticipated reduction, however this has been partially offset by strong order intake in Network Testing. 

In Travel, revenues were up around 12% over the previous year. During the period, part of the MyTravel contract was settled early resulting in a one-off £2.3m benefit to revenues and profits. Excluding this, but including a very small bad debt in respect of the XL Leisure administration, divisional operating profits** were similar to the same period last year. The divisional order book has been reduced by some £4m as a result of the XL Leisure administration and the changes in MyTravel work. The managed services contract with Norwich Union has not been renewed which will affect the financial year commencing 1 May 2009.  There continues to be good interest in @com set against a difficult economic background for the sector and comparisons with record periods of order intake in 2006/7.

Head office costs increased by £1m in the period due to the settlement of a significant onerous property lease and other one-off costs. As anticipated, a provision of £5.6m has been made for vacant space in the Company's head office in Slough previously occupied by Anite Public Sector. 

The proceeds of the disposal of Anite Public Sector of £54.3m were received on 31 October 2008.  Operating cash flow was strong in the half year and as a result the Company had a net cash position of £41m at the period end after a £25m term loan repayment.

*Following completion of the disposal of Anite Public Sector on 31 October, this trading commentary refers to the continuing businesses only (Wireless and Travel). The results of Public Sector will be treated as a discontinued activity in the interim results, which as previously disclosed will include an estimated net profit on the disposal of approximately £24m subject to working capital adjustment.

**Continuing operations before share based payments, amortisation of acquired intangible assets and exceptional property provision.

A conference call for analysts and investors will be held at 8.30am today; please call or 

e-mail Will Henderson at Smithfield for details 

(020 7360 4900 or [e-mail])

Anite Group plc	www.anite.com
Steve Rowley, Chief Executive Christopher Humphrey, Group Finance Director	01753 804000
Smithfield	020 7360 4900
Reg Hoare/Will Henderson

Print resolution images are available for the media to view and download from www.vismedia.co.uk

Notes to editors 

Anite is an international software and solutions company. The industry-specific solutions we provide to the Wireless Telecoms and Travel markets invariably include our proprietary software at their core.  

The comprehensive service we offer, which includes implementation, systems integration, maintenance and managed services, enables us to build long-standing and mutually rewarding relationships with our customers.

Based in the UK, Anite and its subsidiary companies now employ around 515 staff across Europe, America and Asia Pacific. 

 

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