Companies: ITH   

Sales and profits continue to motor at road traffic information provider ITIS, where international growth provides ever more opportunities to counteract a mature UK market.

During the year to March, the Altrincham-based company enjoyed significant growth overseas on the back of its cellular floating vehicle data system, which records movement of drivers’ mobile phones to create traffic information. Mostly licensing its technology to a partner, ITIS now has two profitable overseas schemes in Israel and Belgium, and ten others at less developed stages.

For example, an Australian licence and a South African joint venture will go nationwide early next year, while a successful Chinese pilot scheme will be progressed after this year’s Olympics. Chief executive Stuart Marks confirms that international revenues are ‘set to grow strongly this year’ and thereafter ‘will grow significantly year on year’.

Mounting monies from abroad helped the group to lift revenues 29.3% to £18.32m and pre-tax profits on continuing operations by 30.5% to £4.79m last year, still mostly from the UK. The UK market is nearing saturation, but the strength of the company’s offering was demonstrated through renewals from the likes of Land Rover and Nissan, and the winning of a first mobile phone handset contract, with Nokia.

Strongly cash-generative, ITIS also put some of its cash pile to good use by investing in the acquisition of UK traffic news provider Trafficlink, building its own data centre and purchasing extra radio bandwidth. The latter two ‘will improve the quality and the amount of information’ for all customers.

Forecast earnings from house broker Investec, of 4p and 5.6p per share for 2009 and 2010, see the shares trading on undemanding price-to-earnings ratios. Last backed here at 54p, the shares are worth holding.

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ITIS Holdings	AIM	£10.04m	10.00p	-1.00p
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