Spirent Communications sees 'good momentum' build in H2

Telecommunications firm Spirent Communications said on Tuesday that "good momentum" had begun to build in H2 despite continuing to operate in a "challenging" trading environment.

Spirent said its orderbook was up 6.3% at $312.1m, while order intake ticked up 0.4% to $479.0m. Revenues, however, were down 3% year-on-year at $460.2m and gross margins contracted 0.4 percentage points to 72.0%.

The FTSE 250-listed business said adjusted pre-tax profits for the year were unchanged at $49.7m, while adjusted operating profits dipped from $46.2m to $45.2m. Reported operating profits were down 44.0% at $10.3m.

Chief executive Eric Updyke said: "It has been a very busy year, in which we delivered a good performance.

"Despite ongoing challenging market conditions, momentum picked up in the latter part of the financial year. Our continuing investment in product development has meant that we have been able to support our customers as they progress their 5G related roll out programmes. Good progress was made in customer diversification, and the recent launch of new products has started to achieve traction. We are well positioned for 2025, with a robust balance sheet, an innovative portfolio and a growing order book."

As of 0835 GMT, Spirent shares were down 0.21% at 188.30p.

Reporting by Iain Gilbert at Sharecast.com