Minorplanet dismisses takeover bid
VEHICLE tracking company Minorplanet announced today it had dismissed a potential takeover offer saying the group remained confident going forwards thanks to a strong UK market and a number of key contract wins worldwide.
The Leeds-based company provides products which can track drivers and monitor how long they are behind the wheel.
Last week the group confirmed it had been subject to a takeover approach from an undisclosed third party and had set up a meeting.
Announcing its interim results for the six months to 29 February 2008 the group said that the offer at 40p per share “materially undervalues the company’s leading position in the telematics market”.
Minorplanet reported an rise in pre-tax profits of 0.3m with gross margins up 2% at 74% with turnover down to £11.3m compared to 11.6m the previous year.
The group blamed the downturn in revenue on a “temporary weakening” in its Irish and Australian operations.
Revenue from its Irish operation fell by £0.5m compared with the same period last year but chairman Lars Mcbride said the introduction of new products and a better targeting of sales and marketing effort should bring a fresh impetus for this subsidiary in the second half.
He added that the Australian operation was also expected to perform better in the second half after it had struggled with delays in the availability of new products being sourced from third parties.
In contrast, the UK business generated strong growth in revenues and profits with a number of new corporate contract wins with customers including United Utilities, Morgan Est and the London Borough of Hounslow.
Worldwide the group’s trade agreement with Oracle International produced its first orders in the Middle East, and a network of other distributors in Africa and Eastern Europe is in the process of being established.
Minorplanet has also achieved considerable success in the Pan-European market and has also secured a major contract with Vestas, the Danish supplier of wind turbines.
The group has also invested in a new Spanish subsidiary which has recently taken its first orders, helping to offset the costs of inherited maintenance obligations in this region.
The group said its German business was finally beginning to show some progress with the past months figures showing that the business was set to break even.
Overall the results differed only slightly on the previous year’s figures but the group said it had made considerable progress in both the UK and international markets which would enhance shareholder value and increase profits.
Net assets increased from to £3.5m from £0.1m in 2007 following its acquisition of Australian subsidiary last year.
The group has continued to invest in its technology and has announced an upgraded version of its software has been launched.
Minorplanet is also working on a number of new products including an engine management system interface and an enhanced mapping and reporting capability system.
Chairman Lars McBride, said: “The board believes that the group is well placed to benefit from the continuing penetration of its technology into commercial vehicle fleets and, in the longer term, from the adoption of this on a broader scale by Governments and motor manufacturers. As a result of the various positive actions taken over the last year, we remain confident about the group’s prospects.”
