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Telit on the mountain

Strong growth has given the wireless components business a lot to shout about
August 4, 2015

"Each and every operational financial parameter improved during the first half compared to the corresponding period in 2014," begins the summary of the half-year results for machine to machine specialists Telit Communications (TCM). Indeed, it's hard to find fault with the recent performance of the Aim-traded group, which is excellently placed to benefit from the booming market for 'Internet of Things' technology.

IC TIP: Buy at 326.5p

Among the highlights was the company's sixth year of double-digit revenue growth and a 20 basis point increase in the gross profit margin to 39.7 per cent. The numbers were buoyed by growing sales of a platform that allows companies to build their own connectivity systems, and better margins in its hardware business. This was despite a components shortage in the US, Telit's largest market, which resulted in flat revenues for the region.

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