Companies: TCM   

Fast-growing machine-to-machine communications specialist Telit has cut annual losses from £5.57 million to £662,000.

The AIM-quoted company, floated in 2005 by Israeli entrepreneur and chief executive officer Oozi Cats, increased turnover 73 per cent in 2007 to £39.2 million, including a one-off £1 million payment from Italian concern Bardi to use the Telit brand in its marketing. Telit, which ended the year with nearly £4 million cash, received the first instalment of a £12 million investment from BAMES, the former Italian arm of US printed circuit assembler Celestica, into Telit Wireless Solutions, part of a strategic agreement between the UK company and BAMES’s electronics manufacturing subsidiary SEM.

Cats says Telit has exceeded its ‘forecast break-even position at the operating level for the second half of 2007’. He claims a strong new business book in all the company’s geographical markets, including the US, and declares that Telit ‘is entering a new chapter in its development, one of profitable growth and positive earnings’.

Since floating at 140p, Telit's shares slid all the way to 22.5p in early 2007. Highlighted by Growth Company Investor last March as a ‘speculation for the bold’ at 27.5p, they are now 92p, up 8.5p this morning, valuing the company at £40 million.

Some profit taking might be prudent for those showing significant gains. But the company looks poised for further progress, business conditions permitting.

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Telit Communications	AIM	£26.36m	61.00p	-0.50p
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Other company articles:
AIM news			03/03/2008
Telit slashes loss			26/02/2008
Telit sees 2007 breakeven			14/03/2007
Telit eyes US market			01/03/2006
CEO Focus, by Sally Giles			03/08/2005