LONDON (ShareCast) - Cybit, a provider of vehicle and maritime tracking systems, raced to a seven-month high Friday as investors welcomed a 27% surge in full-year profit and optimistic outlook.
The telematics firm reported profit before
tax for the year ended 31 March 2009 up to £2.14m from £1.69m in 2008. Revenue leapt 30% to £25.48m.
"The outlook for the group remains positive, and although highly competitive, the market for our telematics solutions remains strong," the company said.
A series of costs saving measures, including office closures and consolidating operating platforms, have cut annualised operational costs by about £2m.
Vehicle tracking contracts with some big name clients, such as Sainsbury (LSE: SBRY.L - news) 's and Npower, account for about three quarter of Cybit's business, but they also have a thriving maritime unit.
The company's systems can track trawlers, logging what fish have been caught and where, and could even be used to keep an eye out for pirates off the Somali coast.
A Middle Eastern government has commissioned a pilot project to monitor small craft taking an interest in oil platforms.
If the problem gets worse and an international agency takes responsibility for tackling piracy, the potential for Cybit to be involved is "huge", finance boss Richard Horsman told ShareCast.
Funding concerns have also been addressed amid fears that lending to the telematics sector could dry up as id did for telcos. An agreement in principle has been signed with HSBC (LSE: HSBA.L - news) to provide a three-year committed revolving credit facility of £4m and an overdraft facility of £500,000 to replace an existing £1m overdraft.
There's also cash to fund acquisitions. HSBC will be supportive, says Horsman, as they have been in the past "for the right deal".
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