Anite first-half profit sinks after contract delays

9th Dec 2013 08:33

Anite said pre-tax profit for the six months to the end of October slumped 64 per cent after contract delays at its main handset-testing division. The group, which provides software solutions to the international wireless and leisure travel industries, said pre-tax profit fell to £5.1m during the six-month period from £14.3m a year earlier. Revenue fell 6% to £57.5m as sales from its handset-testing business, which generates over half of its total revenue, tumbled 21%.Chief Executive Christopher Humphrey said: "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."The board expects that 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 and Travel."Shares in the group rose 3.46% to 89.75 at 09:00 in London.CJ