Telematics services provider Cybit Holdings reported a 37% increase in revenues for the six months to September 2008.
European revenues grew fastest helped by recent acquisitions. Pre-tax profits improved from £616,000 to £855,000.
Net cash is just under £500,000. Cybit also has its own lease book worth £2.2m. Cybit has financed a greater proportion of equipment sales in the six months.
Management admits that the current market conditions will have an impact on the business but Cybit is expected to continue to grow. The biggest impact will probably be at the small company end of the market. Full year profits are forecast to improve from £1.69m to £2.1m.
Cybit is in a strong position to take part in any consolidation in the telematics market in the UK and Europe.
The shares slipped 0.25p to 32.5p a share, which values Cybit at £8.9m. The net asset value of the group is £12.7m. Even if all intangible assets are excluded the NAV is still £3.1m.
The shares are trading on six times forecast earnings.
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