Spirent shares hit as first-half profits slump

Shares in Spirent Communications slumped more than 8% after the telecoms testing company posted a sharp fall in half-year profit due to a slowdown in customer spending, but said it expected a better second six months of the fiscal year.

Revenues increased 4% to £467.6m in the six months to June 30. However, pre-tax profit plunged 88% to £4.8m.

"Although the first half trading was materially impacted by the industry-wide slowdown in customer spending at the end of the last year and into the beginning of 2023, we have been encouraged by the strong uptick in orders in the second quarter, which will feed into second half revenue and beyond," said chief executive Eric Updyke.

"We continue to closely monitor our leading indicators that signal returning customer spend momentum and, although uncertainty remains with regard to timing, we are seeing increasing customer engagement, more order opportunities and an improving pipeline."

Reporting by Frank Prenesti for Sharecast.com