22/08/2003
Anite, the IT solutions and services company, has undergone considerable restructuring and reshaping this past year. The last set of results showed the extent of the changes. On sales of £209m, Anite posted a pre-exceptional, pre-tax profit of £18.6m, down from the previous year's £29.6m. However, once all the goodwill and exceptional charges had been added, Anite made a pre-tax loss of £112.5m. As the restructuring is not quite complete, it was no surprise that chairman Alec Daly commented this year would be one of 'transition' as the group attempts to complete its recovery. None of the changes cut much ice with David Johnson of Altium Capital though. In his latest missive on the company, Johnson pays close attention to the historic remuneration levels and to current practice. For instance, Johnson highlights the fact that the interim CEO (Anite is still looking for a leader), David Thorpe, is being paid £25,000 per month for a six-month contract. On the arrival of the new CEO, 'Mr Thorpe will be paid an additional amount equal to the difference between his monthly salary and that of his successor, multiplied by the number of months' service as CEO.' Even more intriguing for Johnson is the proposed changes to the CEO's and finance director's bonus scheme, whereby 50% of the bonus will be guaranteed (at 50% of salary) and 50% based on cash generation and EPS targets. Says Thorpe, 'Historically it was all performance-based. The switch to guaranteed bonuses reflects management's view that it will be difficult to achieve meaningful EPS growth in a year of transition and consolidation.' He advises investors to reduce their exposure to the company. We agree.
| Market cap: | £165m |
| PE Forecast: | 17 |
| Share price: | 49.5p |
| LSE | £84.62m |
25.00p
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1.50p
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| Other company articles: |
| 05/10/2007 |
| 05/10/2005 |
| 14/07/2005 |
| 01/06/2005 |
| 22/08/2003 |
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