Companies: AIE   

International IT venture Anite has returned to profits after two years of restructuring. Figures for the year to April revealed losses of £28.9m converted to profits of £6.8m, after write-downs and disposals relating to assets bought at the height of the tech boom. Underlying profits – stripping out exceptionals and disposals – were 40% higher at £17.3m. Turnover edged up by 4% to £162.9m and net funds stood at £37.2m, bolstered by recent disposals. Anite provides business-critical solutions to the public, travel and telecoms sectors – chief executive Steve Rowley is focusing on the development and sale of Anite’s own software. Significantly, the world’s top ten mobile phone handset makers use its testing technology and last year 40% of UK package holiday bookings were made using Anite’s systems. Rowley flagged up a strong performance from the core business last year, with most of the growth coming from the telecommunications division, which saw rising demand for its mobile phone testing software. Although this looks positive, the public sector side of the business is slightly troublesome, with results affected by losses associated with the completion of a contract with Australia’s state of Victoria and Anite’s ‘Pericles’ product project. Rowley will use balance sheet strength to eye acquisitions and buy back shares rather than pay dividends. For 2006, profits of £18.9m and earnings of 4p are forecast, placing the shares on a forward rating of 17 times. We urge readers to hold rather than buy, due to the public sector uncertainty.

Anite Group	LSE	£84.62m	25.00p	1.50p
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