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25 January, 2006 - 21:43 By Staff Reporter

Trafficmaster goes up a gear

Trafficmaster shares rose 10 per cent, providing a much-needed boost for the Cranfield in-vehicle company as it provided a strong trading and strategic update ahead of its preliminary results – due to be posted on March 21.

Trafficmaster shares rose 10 per cent, providing a much-needed boost for the Cranfield in-vehicle company as it provided a strong trading and strategic update ahead of its preliminary results – due to be posted on March 21.

Trading improved significantly in the second half of the year.

Operating profits, for the full year and before exceptional items, are fully expected to be in line with the market expectations of £1.8m.

This figure compares with £0.028m in the first half.

Revenues for the year are also improved and are expected to be £42.3m (£36.6m).

The firm’s US fleet tracking business Teletrac, which accounts for around 50 per cent of revenue, has had another strong year with revenues up 23 per cent, the company has reported.

During the year, Trafficmaster opened a number of new metropolitan markets in the US and won significant major accounts.

Chief executive Tony Eales said a strategic review of UK operations had been completed and the business restructured to deliver growth and sustainable profitability.

Three new operating divisions have been created to deliver a tight strategic focus – Trafficmaster In-vehicle Products, Traffic-master Services and Trafficmaster Technologies.

Eales said: “This new structure has already delivered improvements in our product positioning together with improved margins and significant cost savings, which are expected to be in excess of £2m per annum from 2006 onwards.

“This will result in an exceptional charge in 2005 of £0.6m. This is in addition to the £0.6m for MG Rover bad debt reported in the first half of 2005.”

 

 

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