Spirent Communications, a leading provider of test, assurance, and analytics services, experienced a decrease in pretax profit in the first half of 2022 due to a slowdown in customer spending across the industry. Despite this setback, the company maintains its positive outlook for the year 2023. Adjusted pretax profit, which excludes exceptional and one-off items, declined to $14.8 million from $49.2 million. However, the company has recorded a notable increase in orders during the second quarter, supported by its current orderbook of $303.4 million, reflecting a 7% year-on-year growth. Spirent Communications expresses confidence in its full-year performance, with expectations of stronger results in the second half.
In the first half of 2022, Spirent Communications observed a significant drop in pretax profit, falling to $4.8 million compared to $40.3 million in the same period last year. This decline can be attributed to an industry-wide slowdown in customer spending that persisted from the end of 2021.
Positive Trending Orders
Despite the challenging market conditions, Spirent Communications has experienced a positive trend in orders during the second quarter of 2022. The company's current orderbook stands at $303.4 million, an increase of 7% compared to the previous year. Additionally, their book-to-bill ratio has reached $107 million, marking a 2% increase.
Full-Year Outlook and Optimism
Spirent Communications maintains confidence in its full-year outlook, anticipating a significant improvement in performance during the second half of the year. While the industry-wide slowdown initially impacted profitability, the strong uptick in orders provides a positive indication for future growth.
Spirent Communications has declared an interim dividend of 2.76 cents, reflecting a slight increase from the previous dividend of 2.63 cents.