Stock Market warms to Cybit’s revenue, profit gains in 08/09
Cybit Holdings plc, the international provider of telematics-based products and services for the managing land and sea assets, said revenue increased by 30% to £25.5m while pre-tax profit grew 27% to £2.1m in the year ended 31st March 2009.
The company's share price responded to the news by posting a 13% gain in morning trade. The Cambridge-based firm is now worth £9.5m.
Chairman Neil Johnson said: "I am particularly pleased with the growth achieved in what has been a very turbulent period for many businesses. To be able to report exceptional levels of both revenue and profit growth in the current climate is testament to the strength and resilience of the business, and our strong management team.
"We remain confident about the prospects for our business and the telematics market as a whole. We believe that Cybit is well placed to continue its success despite the uncertain economic outlook."
During the year Cybit completed the integration of Truck24, the German telematics outfit. This strengthened coverage of the German market and expanded coverage in Austria, Switzerland and Italy. Cybit also acquired the assets of OxLoc, an Oxford based supplier of battery-powered tracking units for HGV trailers, plant and mobile assets.
Mr Johnson said the management team had implemented a number of cost saving initiatives to ensure Cybit was well placed to weather the current economic climate. These have cut annualised operational costs by around £2m.
A combination of the hardening leasing market and more stringent underwriting criteria has resulted in the level of telematics business placed on Cybit's own internal leasing book increasing from 23% to nearer 33% during the year, he said.
"Although requiring a short term cash investment, this is aligned with our strategy of providing increased visibility over long term revenue and profit streams."