Shares digital

The IT solutions group could make a tasty acquisition

by Russ Mould

After three profit warnings since last September, an in-line trading statement was enough to prompt a 6% rise in Anite’s (AIE) shares to 40p. Investors should keep buying, as the group is attractive on a ‘sum-of-the-parts’ valuation basis.

The IT solutions group was tipped as a Shares (4 January) Play of the Week at 40p and although the shares shave not gone up, they have at least done much better than the nasty reverse seen in the FTSE All-Share so far this year.

Sentiment was boosted in August by the long-awaited disposal of the public sector business for £54.3 million to rival Northgate Information Solutions – a deal now awaiting approval from the Office of Fair Trading.

Anite is now focused on its travel and telecoms units. Travel, which supplies reservation systems and e-commerce applications to flight, ferry and tour operators, continues to trade particularly strongly. Telecoms has become a source of concern after a number of profit warnings from major mobile handset makers, including Nokia, Sony-Ericsson and LG, and delays in fourth-generation (4G) products means it has been hard to compensate for a decline in 3G business. That Anite noted orders for the first four months of its fiscal year were ‘up slightly’ was therefore encouraging after a plunge in handset testing sales in the second half of last year.

Shares says: Break-up hopes should continue to support the shares. Buy