Blames plunge on consolidation in phone industry
UK phone testing specialist, Anite, was putting a brave face today [9th December 2013] on its half yearly results, despite a massive fall in operating profits. Margins were down 63 per cent to £5.3 million compared to the same period in 2012 when Slough-based Anite notched up an operating profit of £14.3 million. Revenues were also down 6 per cent to £57.5 million against £61.2 million last year. Much of the trouble was attributed to the company’s handset division which had a slow start to the year, made worse by “significant” consolidation in the phone industry.
One of the few highlights was group order intake, up 5 per cent to £56.7 million (2012: £53.9 million).
Commented Anite CEO, Christopher Humphrey, “Despite the disappointing start to the year, the board believes that the underlying drivers for the wireless division, namely the increased market penetration of smartphones, mobile data growth and the roll-out and complexity of mobile technology, are undiminished.”
Reflecting our conviction, we continue to invest in these areas developing new products and accessing adjacent markets.
“We expect the group’s second half trading will improve on the first half as it anticipates a material improvement in handset testing and continued robust performances from network testing.”
In the past year Anite’s shares have almost halved as trading updates disappointed investors, falling from a high of 163 pence at one point to just 86 pence at close on Friday [December 6th 2013 ].