Trafficmaster's 2009's interim results are like a curate's egg - decidedly mixed. Operating profits were only up four per cent at £2.9m but were 43 per cent ahead at the pre-tax level, thanks largely to a jump in financial income from £320,000 to £1.41m. Clever Trafficmaster redenominated a significant portion of its debt into dollars last December at an exchange rate of £1:$1.45. So with sterling strong in the first half of 2009, financial income includes a £900,000 currency gain.
The trading results, however, were decidedly varied. The star performer was the mainly US-based fleet tracking business where sales increased a third to £19.39m and operating profits soared from £876,000 to £2.70m.
Back at home the news was not so good, as the emerging products consultancy business reported profits down from almost £4m to £701,000. A research contract for Norwich Union ended before road pricing work for the Department for Transport really got going. The stolen vehicle tracking business made a profit of £672,000, though.
Trafficmaster's business plans "are not predicated on an upturn in the global economy". Broker Canaccord seems to be sticking with its March prediction of 12 months sales up from £55m to £60m and unchanged operating profits of £5.3m - and probably no tax as Trafficmaster has over £20m of unused tax losses.
TRAFFICMASTER (TFC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 34p | MARKET VALUE: | £ 46.5m | |
| TOUCH: | 33.25-34.75p | 12-MONTH HIGH: | 34.2p | LOW: 7.5p |
| DIVIDEND YIELD: | nil | PE RATIO: | 8 | |
| NET ASSET VALUE: | 22p* | NET DEBT: | 36% | |
| Half-year to 30 June | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Net div per share (p) |
|---|---|---|---|---|
| 2008 | 27.2 | 2.40 | 1.76 | nil |
| 2009 | 28.9 | 3.44 | 2.52 | nil |
| % change | +6 | +43 | +43 | – |
Sector: Rail, road and freight. * Includes intangible assets of £16.1m, or 12p a share. | ||||
