Spirent FY profits rise but outlook cautious

In the year to the end of December 2022, adjusted pre-tax profit was ahead 11% at $131.4m, with revenue up 5% to $607.5m. Revenue was driven by renewed strength in high-speed Ethernet from market demand and new product launches, offsetting some customer timing impacts in the lifecycle service assurance segment.

The order book rose 7% to $288.1m, with 30% for delivery beyond the next 12 months, which Spirent said was a record and "adds to future revenue visibility".

The dividend per share was lifted 12% to 7.57 cents a share.

Chief executive Eric Updyke said: "2022 saw another year of strategic execution, delivering strong growth in profit before tax for the sixth year in succession.

"Since the fourth quarter of 2022 we have seen delays to some of our customers' decision making and whilst we expect a more challenging first half of 2023, our business drivers remain intact, and we are very well placed to deliver for our customers as they invest in technologies such as 5G in order to maintain their own competitive advantages.

"Spirent operates in markets underpinned by resilient structural growth characteristics and, which together with our broad and deep portfolio and our enhanced customer proximity position us strongly to continue executing on our strategy in the medium and long-term."

At 0830 GMT, the shares were down 11% at 188.30p.