9th Oct 2014 10:39
LONDON (Alliance News) - Alternative Networks PLC Thursday said trading in its last financial year to end of September, was in line with its own expectations, buoyed by revenue growth and an increase in its mobile subscriber base
The UK communications products and services provider said it saw a strong performance in mobile with its subscriber base up 12% year-on-year, while it said it made good progress on the integration of ControlCircle and Intercept IT, two businesses it acquired during the year.
"The organic Alternative business is expected to deliver modest like-for-like revenue growth for the year and the acquired businesses are expected to deliver revenue growth above 10% for the period since acquisition," the company said in a statement.
Alternative Networks said it continued to increase its share in the mobile market during the year, with 5,700 net additional connections bringing the total mobile subscriber base to over 91,400 at year-end.
"Gross profit in the division is expected to show growth of a minimum of 10% year-on-year," it said.
In the company's Advanced Solutions business, it said order momentum picked up pace in the second half, boosted by Intercept IT and Control Circle, and contract wins with universities.
"The year finished strongly with a record order level at the end of the fourth quarter, which has resulted in a backlog of GBP3.8 million," the company said.
The company said cash generation remains strong, with its net debt position at GBP29.4 million at the end of the year.
"This was down from a peak of GBP40.8 million in January 2014. This is despite a slight increase in capital expenditure during the period, associated with the two acquisitions," the company said.
As part of the company's plan to consolidate its five London offices into two during 2015, it said it has now entered into a lease for a 24,000 square foot new office space on Blackfriars Road in south east London, which it said will become its new headquarters.
Alternative Networks said it will release its full-year results on December 10.
The company's stock was down 0.8% at 451.05 pence before midday Thursday.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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