Alternative Networks sales return to growth

3rd Oct 2013 14:32

Previously falling sales have reversed at business communications services provider Alternative Networks.A trading statement revealed growth had returned in the second half of the year, with full year profits and cash flow for the full year in line with management's expectations.The Solutions arm saw orders up 25% on the first half, with a 4% in full year sales ahead of our analysts estimate. While the Fixed Line business continues its managed decline, the Mobile segment had a 5% increase in connections and a good level of customer signings in the third quarter.High levels of cash generation resulted in net cash balances of £17.1m at the period end. The company said: "The group has previously announced its intention to pay a dividend of not less than 12.65p per share for 2013 with growth of not less than 10% in 2014. "Additional guidance on dividend progression will be provided at the preliminary results."Analyst Julian Yates at broker Investec said: "The board continues to consider both further returns of surplus cash to shareholders and the potential for earnings-accretive acquisitions, where we expect continued discipline around price and strategic fit."Shares in Alternative Networks rose 4.9% to 351.5p at 16:07 on Thursday. OH