The Board is recommending the payment of a final dividend for 2022 of 4.94 cents (4.12 pence) per share which, together with the interim dividend of 2.63 cents (2.16 pence) per share paid in September 2022, brings the full year dividend to 7.57 cents (6.28 pence) per share, a dividend cover of 2.5 times adjusted earnings. This is a 12 per cent increase compared to the full year dividend for 2021. In Sterling terms this represents an increase of 24 per cent.
Other Financial Highlights:
- Orderbook up 7 per cent to $288.1 million, with 30 per cent for delivery beyond the next 12 months which is a record and adds to future revenue visibility.
- Revenue up 5.5 per cent driven by renewed strength in high-speed Ethernet from market demand and new product launches, offsetting some customer timing impacts in Lifecycle Service Assurance.
- Rigorous focus on cost control, including disciplined execution of their site strategy, and carefully targeted investment in high growth areas resulted in their cost base remaining flat year-on-year despite inflationary pressure.
- Adjusted operating profit increased by 9 per cent to $129.5 million, with adjusted operating margin improving to 21.3 per cent, up from 20.6 per cent in 2021.
- Despite softening in the last quarter of the year, the orderbook increased $18.3 million to $288.1 million providing greater revenue visibility for outer years. Book to bill across the year was 103 (2021: 111).
- Strong balance sheet - cash closed at $209.6 million (2021: $174.8 million) after disciplined focus on working capital management.
- Cash flow from operations increased 24.5 per cent to $140.6 million (2021: $112.9 million).
- Materially reduced balance sheet risk through an insurance buy-in of their main defined benefit scheme pension liabilities which terminates future funding requirements.
