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Pin to quick picksLloyds Share News (LLOY)

Share Price Information for Lloyds (LLOY)

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Share Price: 55.52
Bid: 55.48
Ask: 55.50
Change: 0.50 (0.91%)
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Open: 55.00
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UPDATE 1-Anite says 4G rollout sparks recovery in handset business

Mon, 12th May 2014 11:57

(Adds details, CEO and analyst comment, updates share price)

By Noor Zainab Hussain

May 12 (Reuters) - Anite Plc said it expects abetter opening half of the current financial year as the rolloutof 4G networks boosts demand for handset-testing services usedby customers such as Samsung Electronics Co Ltd andVodafone Group Plc.

Anite's shares rose more than 10 percent on Monday morning,making the stock one of the top percentage gainers on the LondonStock Exchange.

The company said its handset-testing business had a "strong"final quarter of the year, with revenue broadly in line with thesame period a year earlier. This would enable it to meet itsfull-year expectations on revenue and adjusted operating profit.

"... We are more encouraged by prospects for Handset Testingfor the first half of the new financial year compared to thoseexperienced last year," Chief Executive Christopher Humphreysaid in a statement.

Anite, which is considering selling its travel reservationsoftware business, will report its full-year results on July 2.The company's financial year ended on April 30.

In a trading update on Monday, the company did not providenumbers for its revenue and adjusted operating profit forecasts.

Analysts said the apparent recovery in handset testing, abusiness beset by contract delays earlier in the year, waslikely to result in improved sales for the second half of theyear and beyond.

The multi-billion-dollar rollout of long-term evolution(LTE) 4G networks in China has helped to boost revenues fortelecoms testing companies, such as Spirent Communications Plc.

Anite said growth in its handset division during the quarterended April 30 was helped by "the first significant benefits"from investments in 4G technology made over the last few years.

"LTE, customers re-engaging and other technology milestonesall helped to deliver the material fourth-quarter upliftrequired after the poor first half of 2014," Investec analystJulian Yates wrote in a note.

Fleet, Hampshire-based Anite said all three of its mainbusinesses - handset testing, network testing and the supply ofsoftware to the travel industry - performed well in the fourthquarter.

The company said it was still investigating the potentialsale of its travel reservation software business, a plan firstunveiled in February, in line with its strategy to focus onwireless.

The travel business accounted for about 15 percent ofAnite's total revenue of 132.5 million pounds ($223.13 million)in 2013.

The Telegraph reported on Saturday that Anite had enteredexclusive talks to sell the business to LDC, the private equityarm of Lloyds Banking Group Plc.

The newspaper reported that Anite's travel division couldfetch around 40 million pounds ($67.4 million). (http://r.reuters.com/myb39v)

Anite and LDC declined to comment on the report whencontacted by Reuters.

Anite's stock was trading up 9.4 percent at 90.75 pence atat 1137 GMT. ($1 = 0.5938 British Pounds) (Editing by Robin Paxton)

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