Alternative Networks on track to meet full-year guidance

4th Jun 2014 08:46

- Half-year profit falls, revenue up- Positive outlook for second half - On track to meet full year expectations Telecoms reseller Alternative Networks reported what it described as an encouraging set of interim results and said its growth prospects remain extremely positive.The group, which has been on an acquisition spending spree this year boosting its IT cloud services offering with Intercept IT and Control Circle said, pre-tax profit fell 17% for the six months ended March 31st to £4.5m while revenues increased 14% to £63m."Healthy organic growth was given an additional boost by the new businesses acquired. This trend is continuing into the second half of the financial year, and we have a record order backlog and a full pipeline of new business opportunities. "With our service offering broader and more attractive than previously, we can expect a greater proportion of those opportunities to be successfully converted, albeit that with larger customers, multi service contracts can be more complex, occasionally resulting in a longer sales cycle," the group said in its company update.Alternative Networks said it remains confident of continued growth in the second half of the financial year, and of delivering an outcome in line with expectations. The board is proposing to pay an interim dividend of 4.9p per share, 11% higher than last year's interim dividend of 4.4p per share.The group also confirmed that Mark Quartermaine has returned to the board, taking the role of Chief Operating Office.CJ