StockMarketWire.com - Communications technology group Spirent Communications said it expected to exceed market expectations with an around 30% rise in annual operating profit.

Adjusted operating profit for the year through December was now expected in a range of $75m-to-$77m, the company said.

Revenue grew 6% to $477m, while order intake rose 6% to $470m.

Spirent said it benefited particularly from strong growth at its networks and security, and positioning units.

The positioning business had benefited from significant one-off business with a US defence contractor, which was not expected to be repeated in 2019.

'Due to significant reorganisation in our key customer base for lifecycle service assurance, we saw only modest annual revenue growth for this business,' Spirent said.

'Connected devices delivered strong profit growth in the year, driven by effective cost management.'

On the expenses front, the company said improvement initiatives implemented during the year meant it was able to mitigate cost inflation and maintain a broadly flat cost base.

'We expect to exceed the market's profit expectations for the financial year 2018,' chief executive Eric Hutchinson said.

'We have market leading technology offerings and are well placed to optimise opportunities as they continue to arise.'




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