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(Alliance News) - Spirent Communications PLC on Thursday reported "robust" growth in both revenue and profit for 2020 despite a "challenging" environment.
The Crawley, England-based company is a provider of testing, analytics and security for telecommunications networks.
Spirent's 2020 order intake was USD539.4 million, up 1% from USD532.0 million in 2019, and revenue for the year was USD522.4 million, up 4% from USD503.6 million. This was due to "strong" demand for both lab and live assurance solutions, as well as its new 5G device testing solutions and services.
The company's 2020 reported pretax profit was USD95.8 million, an increase of 7% from USD89.6 million in 2019, while adjusted operating profit rose 11% to USD103.5 million from USD92.9 million, coming in just above market consensus of USD101.5 million. This was reflected in an increased closing orderbook and good growth in both lab and live assurance portfolios.
Spirent declared a total 2020 dividend of 6.04 US cents per share, which was up 12% from 5.39 US cents in 2019. As a result of its revenue and profit increases, it intends to pay a special dividend of 7.50 US cents.
Shares in Spirent were up 6.5% at 253.00 pence in London on Thursday.
"Our results today provide further evidence that our strategy is working. Our business model has proved resilient, we have successfully navigated a challenging environment and we delivered strong earnings growth, without any financial support, use of furlough schemes or staff reductions due to Covid-19. Our operational performance, continued margin progression and effective working capital management, along with the opportunities we see ahead, give us confidence to increase our dividend and today commit to a special dividend," said Chief Executive Eric Updyke.
Looking ahead, Spirent said it remains confident it will see sustainable and profitable growth in 2021 and beyond.
"We enter 2021 in a position of strength. With an expanded high-quality management team, and a world-class customer base that trusts us and respects our expertise, I remain optimistic about our ability to seize opportunities and ensure we are well positioned for continued sustainable, profitable growth. Our strong financial platform affords us this great flexibility to evolve and grow our business both organically and via mergers and acquisitions, with a focus on our three key strategic pillars: Customer Centricity, Innovation for Growth and Operational Excellence," said Updyke.
By Zoe Wickens; zoewickens@alliancenews.com
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