Trading In Line12 Apr 2013 09:20
Alternative Networks' trading in the six months to the end of March has been steady and results for the year to the end of September continue to track in line with management forecasts. The group says cash flow remains strong and net cash balances were over £15m at 31 March. The group says that in Advanced Solutions the order book is making good progress, with sales in the second quarter materially higher than sales in the first quarter ended 31 December. It says this is expected to result in a greater weighting of revenues recorded in the second half of the year. The pipeline continues to grow and is at record levels, giving confidence in results for the full year. It says that network revenues remain subject to competitive pressures and regulatory impacts. Mobile subscribers at 31 March have increased by 10% over levels a year ago. But it says there has been a slowing in growth in the last six months due to more competitive pressures in the market, and the delay in provision of a 4G mobile data offering from its network partners, which is due in the second calendar quarter of 2013. But it adds: "Synapse continues to differentiate the Alternative service and there has been a net increase in subscribers, and a record number of customers renewed their contracts with Alternative in the six month period. Fixed line network services trading is stable and broadly in line with expectations." It says gross margin continues to show resilience, on the back of improved terms obtained from suppliers and the value added by the service offering through the group's 'Synapse' service portal. For the full year, the Group gross margin is expected to show an increase over 2012. Story provided by StockMarketWire.com
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