Shares digital

Spirent Communications (SPT) – Finals PTP: £17.8m (-£22.3m) Divi: n/a (n/a)

Higher than expected cost savings from November’s strategic review and burgeoning demand for broadband and wireless networks drove the telecoms testing and measurement expert back into the black last year, and should underpin further progress in 2008.

Chairman Edward Bramson, who took the reins just over a year ago after Sherborne investors forced out the previous management team, unveiled £29 million of annualised cost savings, against a target of £21 million. A productivity programme also boosted free cash flow. As a result, the £451 million cap has £79 million in net cash on its balance sheet, despite carrying out £66.3 million of share buybacks last year.

The shares in Spirent, which had been badly hit by autumn’s huge profit warnings from telecom equipment giant Ericsson (ERIC:NYSE), rebounded 7% to 59.25p.

Shares says: Well run and gathering vital sales momentum too.

by: Russ Mould