Minorplanet races up on Full List move

31/12/2001

Fast-growing vehicle tracking systems developer Minorplanet Systems provided followers with some New Year's cheer today. The shares raced up in early trading after it revealed it is moving to the Full List on 8 January, writes James Crux.

Telematics specialist Minorplanet (MPS) said dealings in its shares will be switched to the Official List on 8 January. The move follows rapid sales growth at the Leeds-based company. Chairman Michael Abrahams cheered shareholders at the group's AGM earlier this month, saying that first quarter sales in the current year in the UK and Europe were 'well over double last year's levels'.

Minorplanet holds a 62 per cent stake in US telematics play @Track, based in Texas. Abrahams explained the company was making 'good progress' in the restructuring of @Track and was 'convinced the opportunities in the US are immense'. Back in October, the vehicle tracking venture unveiled sparkling full year figures to end-August which were in line with analysts' expectations. Sales swelled by 206 per cent to �52.9 million and pre-tax profits after exceptionals jumped from �0.7 million to �5.3 million.

Stripping out the US acquisition, sales were still an impressive 146 per cent higher at �42.6 million and pre-tax profits were 100 per cent healthier at �1.4 million. The group set up businesses in Holland, Spain, Australia, France and Germany and enjoyed an outstanding year in its UK businesses, with sales rocketing by 83 per cent to �31.7 million, bringing in pre-tax profits of �4.8 million. New customers won included the likes of Amey Highways, Morrison Construction and SITA, with companies such as P&O and Hotpoint Creda placing orders for different parts of their fleet. Turnover reached �10.9 million in Europe and Australia, with Minorplanet winning customers such as Shell Petroleum and Siemens Teece.

Investors pushed the shares up by 24p to 320p in early dealings on news of the move, valuing the business at �213 million. During 2001, the shares peaked at 535p and fell as low as 145p.