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SPT.L119.75GBp-1.50 (-1.24%)

52wk Low / High
74.50 / 130.25
Market Cap
£732.56m
Shares in Issue
611.74m
Earnings Per Share (TTM)
-0.00p
Current PE Ratio (TTM)
0.00
Div / Yield
3.07p / 2.56%

Quotes delayed, except where indicated otherwise. Currency in GBp.

Overview

Spirent Communications Plc provide network testing, performance analysis, service assurance and security for a range of major global customers. Their solutions enable the development and deployment of next-generation networking technologies, such as broadband services, Internet telephony, wireless & 5G, well known web applications, and security testing.

The group has c.1,500 customers worldwide, including the major industry players amongst network service providers, equipment manufacturers, enterprise and government.

The communications sectors are currently seeing step changes such as a trend towards virtual networks, growth in IOT (internet of things) and a shift towards 5G. The video above highlights how these changes could benefit the group.

Directors

Eric Hutchinson (CEO)
With Spirent since 1983. Fellow of the Association of Chartered Certified Accountants.

Paula Bell (CFO)
Extensive CFO experience within plc’s including: John Menzies plc & Ricardo plc. Currently NED at Laird PLC.

James Armstrong (COO)
Previously CTO Symmetricom, President Movidis

NED’s: Jonathan Silver (prev. CFO Laird), Tom Maxwell (prev. Head UK Growth Martin Currie Investment Management), Gary Bullard (senior positions IBM & BT Group plc)

 

Financials

P&L2015
$mm
2016
$mm
Turnover477.10457.9
Operating Profit10.10(41.10)
Earnings after tax13.5(42.3)
Balance Sheet2015
$mm
2016
$mm
Cash & Equivalents10296.1
Total Assets592508.6
Total Liabilities179.9167

Peer Group

Iomart Group plc (AIM:IOM)
UK based data centres & associated services

Keysight Technologies Inc (NYSE:KEYS)
Test & measurement, equipment & software

BAE Systems plc (LON:BA)
Detica division provides comparable security solutions

TESSCO Technologies Inc (NASDAQ:TESS)
Wireless comms products for network infrastructure

Daisy Group (Private)
Networks. Reportedly mulling a £1.4bn IPO (Feb 2017)

Redcentric Plc (AIM:RCN)
IT Managed services provider

Shareholders

Directors
Eric Hutchinson – 0.33%
Paula Bell – 0.02%
Alexander Walker – 0.07%
Rachel Whiting – 0.02%
Tom Maxwell – 0.02%

Other

Threadneadle Asset Management – 14.75%
M&G Investment Management – 9.93%
Primestone Capital LLP – 6.91%
Axa Framlington Inv. Mgmt. – 6.09%
Artemis Investment Management – 5.86%
Neptune Investment Management – 5.62%
Brandes Investment Partners – 5.32%
Fidelity International Ltd – 4.9%
Aberforth Partners – 4.66%
Legal & General Inv. Mgmt. – 2.52%

Macro Indicators

“In recent years, network virtualization has played a key role in simplifying the management of datacenter networks.” Financial News (May 2017)

“Not wanting to be left behind by the likes of AT&T and Verizon, another major telecom company is making plans to support 5G connectivity.” TechRadar (May 2017)

Media Coverage

The Motley Fool (May 2017)
“City brokers expect Spirent to wave goodbye to the earnings volatility of recent years and print a 29% earnings advance in 2017…”

Evening Standard (May 2017)
“Citi’s tipsters upgraded Spirent to Buy and bumped up their target price from 90p to 145p as they identified it as a target because of its “quality business and favourable exposure to end markets”.

Broker Coverage

Liberum Capital (May 2017): Liberum Capital restated their buy rating on shares of Spirent Communications Plc (LON:SPT) in a research report released on Monday morning. The firm currently has a GBX 134 ($1.73) price objective on the stock.

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