Over the last year or so the Anite story has centred on its wireless testing business. The travel division lagged while it approached a performance inflection point as it transitioned from old to new technology. The large multi-year contract with Thomas Cook that Anite announced this morning suggests it is starting to hit that inflection point. As a result of the deal (no financial details were disclosed), revenue from the travel division is expected to be “at least in line” with the previous year, which would reverse the previous downward slide.
When it disclosed Q3 performance last month (see Anite thrives on handset testing), Anite said it needed c£1.5m of licence revenue sign off by the end of the current year (to April 30) to meet expectations. The Thomas Cook deal will deliver that, with a further uplift next year and beyond. The deal will also reduce the dependence on the TUI contract (up to 40% of travel revenues).
It is good news all round – the board expects overall group profits for the year to be at least at the top end of the range of current market expectations.