Minorplanet in the driving seat
IT'S full throttle ahead for vehicle management information group Minorplanet in a year brimming with key contracts.
Although the Leeds-based firm said that its preliminary results for the year ended August 31 fell short of its original targets, it's a world away the heavy financial losses, outdated and unstable product and poor customer service reputation that the company endured some three years.
With a pre-tax profit rise of 60% from £1m to £1.6m, an increase in turnover from £23.8m to £24.4m, and a much healthier balance sheet position, Minorplanet said it felt it had returned to the forefront of fleet management technology.
The turnaround has included substantial investment in new products and personnel, board changes, and the acquisition of 49.9% of its subsidiary Minorplanet Asia Pacific Pty Ltd ('MAP'), for £1.7m in May.
Its corporate sales team also secured a number of impressive new contracts including Sodexho Land Technology, Morrison Plant Services and Morgan Sindall. A three year partnership with Yorkshire Purchasing Organisation, the UK's largest local authority consortium, has also been agreed.
Lars McBride, chairman of Minorplanet said:
“'With a significant increase in the level of interest in telematics products from a variety of sources including government, the insurance industry and vehicle manufacturers, it appears that strong market growth projections for the next few years may be realistic.
“There is also clearly a trend towards consolidation of what traditionally has been a highly fragmented market. Minorplanet is increasingly well placed to take
advantage of these market developments, given its much improved financial
position, its unique product portfolio and development capability and its strong
international support operations.”
However, it admitted that delays in the launch of its new control unit AEM 6000 put a damper on performance, although launch issues have since been resolved,
The data control unit has voice capability and internet connectivity and along with other hi-tech products puts Minorplanet at the leading edge of the telematics market.
And while Minorplant's Australian, Irish and UK operations performed well, its German division's performance was disappointing, although losses were reduced.
But the firm believes that with new products and management team, its German division will prove a key strategic market and a gateway to Eastern Europe.
