Telematics specialist Cybit Holdings has clinched a £3.5 million contract with a 'major supplier of heavy land seismic exploration equipment'.

The Cambridgeshire-based company says its customer, a company in the oil and gas sector, wants to keep its identity secret for reasons best known to itself, but claims the deal, for VHF radio-based tracking equipment, is worth a 'minimum of £500,000 a year' over a contracted seven-year period. Cybit says its 'Tracs-TDMA' product will provide a 'cost-effective, flexible and intelligent' VHF radio network, fully integrated with GPS positioning, to provide 'tight tracking and precise positioning control across land seismic spreads'.

Chief executive Richard Horsman says Cybit already has 'an excellent working relationship' with its coy customer. He claims this new contract reinforces 'the strong, dominant position in the oil and gas exploration and production market' enjoyed by Cybit, which made £637,000 pre-tax on £13.3 million turnover in the year to last March and increased profits in the six months to September 2007 from £19,000 to £616,000 on turnover up 55 per cent to £9 million.

First highlighted by Growth Company Investor at a mere 1.75p in 2004, Cybit shares hit 83.5p the following year before falling to 35p in July 2006. They are now 49p, up 1.5p this morning, valuing the company at £11.7 million, and could well outperform some sector peers.

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Cybit Holdings	AIM	£2.44m	32.75p	0.00p
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