Spirent Communications hails 'increasing momentum' as revenue, profits grow

Telecommunications testing company Spirent Communications said on Thursday that full-year revenue and profits had both improved during what it called a "year of increasing momentum".

Spirent Communications posted a 10% increase in full-year revenues to $576.0m, driven by an 18% jump in order intake to $637.0m and a 30% improvement in its order book to $269.8m, driven by customers' need to support an increasing number of 5G rollouts.

The FTSE 250-listed firm also stated adjusted operating profits were up 14% to $118.5m, full-year adjusted pre-tax profits were 14% higher at $117.9m, and adjusted basic earnings per share were 13% stronger at 16.59 US cents.

Gross margins ticked up 0.3 percentage points to 73.7% and adjusted operating margins improved 0.8 percentage points to 20.6%.

Spirent also hiked its full-year dividend per share 12% to 6.76 US cents.

Chief executive Eric Updyke said: "2021 was a year of increasing momentum at Spirent with the results showing that our strategy continues to be a winning one. Our business model is becoming increasingly resilient, supported by a strong financial and operational platform, and we are pleased to begin the new financial year with a growing orderbook, improved visibility and lower cyclicality.

"We are well placed to deliver further progress, with our key business drivers intact, and we continue to invest and innovate in our leading technology solutions across our portfolio."