(TFC.L) Trafficmaster PLC Buy/Sell

RNS Number : 6645C Trafficmaster PLC 18 November 2009

18 November 2009

Trafficmaster Plc

Interim Management Statement

Trafficmaster Plc, the leading supplier of intelligent driving services, today issues its Interim Management Statement covering the period from 1 July 2009 to 17 November 2009.

Trading update

The Board is pleased to report that the Group has made solid progress in the second half of the year, despite trading conditions remaining challenging. We are on track to deliver a similar level of operating profit in 2009 as we did in the previous year.

Business Services

Trading in our US-based fleet tracking business Teletrac has continued in a similar pattern, with weakness in the smaller business sector being offset by significant progress in national accounts. Our sales pipeline remains strong, although a trend towards extended decision-making timetables and product trials prior to roll-out decreases the level of visibility over the timing of future revenues. Overall, we are pleased with the progress that we are making in the US and we remain optimistic about the long-term prospects for growth.

In the UK, Fleet Director continues to make good progress with a number of significant customer wins and industry recognition. In September, Fleet Director won Fleet Van's Technology Initiative of the Year award and Mobile Electronic News' Best Fleet Tracking Product award.

Overall, the combined UK and US Business Services revenues were up 20% year-on-year to the end of September.

Consumer Services

There are tentative signs of recovery in the level of UK automotive sales. Despite these more positive indicators, trading conditions have continued to be difficult. We are managing our cost-base tightly, which has helped to contain the impact of revenue shortfalls. The Board is pleased to note that we expect the division to continue to be profitable. In the second half of the year our Traffic business has secured contract extensions for supply of traffic data to Honda and the UK Government's Department for Transport.

Overall, Consumer Services revenues were down 25% year-on-year to the end of September.

Tony Eales, Chief Executive Officer, commented,

" Trafficmaster continues to show resilience in the face of tough market conditions. On a positive note, we are encouraged that customers continue to recognise the strength of our products and services. They understand the impact they can have to help them reduce costs and improve efficiencies in their own businesses. We are continuing to invest in our sales resource and increase our activity levels. Our sales pipeline continues to grow, which gives us confidence over performance in 2010. In the short term, lengthened sales cycles have made the timing of revenue less certain.

"Looking forward, we are upbeat about the prospects for the Group. Our industry remains fragmented, and we see a number of opportunities to create long term value through strategic acquisitions within our core markets."