Further acquisitions eyed by on-the-up telematics firm
Following its recent successful acquisition of coastal surveillance company, Bluefinger, Cambridgeshire telematics company, Cybit says further acquisitions may be on the cards.Following its recent successful acquisition of coastal surveillance company, Bluefinger, Cambridgeshire telematics company, Cybit says further acquisitions may be on the cards.
Commenting in an announcement accompanying Cybit's full year results, chief executive Richard Horsman said: "The opportunities for consolidation in the market continue to present themselves on a fairly regular basis. Most do not pass our strict criteria for further investigation but as the recent acquisition of Bluefinger demonstrated, there are opportunities to develop the group by acquisition as well as organically."
In addition to vehicle telematics, Bluefinger’s telematics are also used by government agencies to protect and manage sovereign assets including fish stocks and mineral reserves. Current customers include the UK, Tanzanian and Ghanaian governments and the Southern African Development Community.
News that Cybit had returned to profitability was greeted positively by the City, with shares rising six per cent to 50p.
Year-end results showed a 50 per cent increase in turnover to £10.2m compared to £6.7m the year before and pre-tax profits of £200k, compared to a loss of £1.5m last time.
Cash stood at £2.7m compared to £3.7m in 2005.
Chairman, Neil Johnson was bullish about the company's prospects going forward, anticipating good things from Cybit's recent acquisition of web-based vehicle tracking company, Bluefinger.
He said: "We are seeing increasing evidence in the UK market of a growing acceptance of telematics in transport-related and support service sectors. Two separate markets are emerging, advanced vehicle location systems and more complex integrated business and logistics solutions.
"While the advanced vehicle location business is becoming highly competitive and price-sensitive, we are well placed to exploit the potential with Fleetstar. In the more complex and higher margin business, of integrated solutions, Cybit is well placed to further improve market penetration. In the coming year we expect to increase market share in all sectors where Cybit operates.
"Meanwhile, the acquisition of Bluefinger will extend our reach into the maritime arena where we see new and exciting opportunities whilst also bringing complementary activities in related vehicle telematics where Cybit has clear market leadership."
The AIM-listed also reported slower than expected growth in Germany, where it recently established a subsidiary, but growth in Sweden in excess of 120 per cent.