Shares in Trafficmaster rose to their highest point in a year after results from the vehicle tracking and traffic information provider beat market expectations.
Revenues rose 6 per cent to £28.9m, while pre-tax profit climbed 43 per cent to £3.4m after it cut capital expenditure 42 per cent to £2m.
Earnings per share rose from 1.75p to 2.51p.That compared with house broker Canaccord Adams’ forecasts of revenues of £27.1m and earnings per share of 1.9p.
Growth came from its business services unit, where revenues rose 32 per cent to £19.4m as large companies looked to keep tighter cost controls of their vehicle fleets.
Operating profit trebled to £2.7m. However, on a constant currency basis, revenues were modestly ahead of the same period in 2008 and operating profit more than doubled.
Bu weakness remained in its consumer services division, where revenue fell 25 per cent to £9.5m as UK motor sales continued to fall.
The group recorded an outflow of cash from operations of £1.2m compared with an inflow of £392,000 a year ago as it made a final payment of an inventory commitment made in 2008.
Shares in the group rose 2p to 36p.
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