Will Spirent Communications’ order book growth in 1HFY23 translate to higher revenue in 2H? - Kalkine Media

August 10, 2023 06:18 AM BST | By Team Kalkine
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Highlights

  • Spirent Communications is a provider of automated test and assurance solutions for next-generation devices and networks.
  • At the end of H1 FY23, SPT’s orderbook registered 5% YoY growth to USD 303.4 million..
  • SPT will be paying an interim dividend of 2.76 US cents per share in September this year, with an ex-dividend date of 10 August 2023.

FTSE 250 listed Spirent Communications PLC (LSE: SPT) offers automated test and assurance solutions for next-generation devices and networks, including information solutions for high-speed Ethernet as well as network infrastructure markets.

At the end of the first half of the fiscal year 2023, SPT’s orderbook showed an improvement of over 5% YoY to USD 303.4 million, demonstrating revenue visibility over the medium term.

For H1 FY23, the company reported a year-on-year growth of about 4.9% in the interim dividend. Also, the firm hosts a progressive dividend policy with a dividend cover of 2 to 2.5x adjusted earnings. SPT will be paying an interim dividend of 2.76 US cents per share in September this year, with an ex-dividend date of 10 August 2023.

 

Moving ahead in FY23

Spirent Communications is in talks with a retail bank for a detailed work scope of an important lab and test assurance and services solution. This has been estimated to cost around USD 15 million.

The company believes that the substantial portion of revenue will be secured during the second half of the year 2023 (H2 FY23).

Top 10 shareholders

Around 63.29% of the total shareholdings in Spirent Communications is held by its top ten shareholders. While Columbia Threadneedle Investments (UK) owns the maximum shares of around 11.06% shareholding, Aviva Investors Global Services Limited holds over 10.5% shareholding in the firm.

Stock Price Performance
The stock price of the company has fallen by approximately 5.31% in the past one month. It has decreased by over 28.7% over the last six months. The stock’s 52-week low and 52-week high price stands at GBX 147.70 and 294.00, respectively.

 

Please note markets are trading in a highly volatile zone currently due to certain macro-economic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 04 August 2023. The reference data in this report has been partly sourced from REFINITIV.


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