Slow sales put jambuster in a skid

By MALCOLM WITHERS
Updated:

 

THE lights remained at red for trouble-hit vehicle navigation specialist Trafficmaster as it failed to fulfil chief executive David Martell's predictions that revenue growth would return in the second half of the year.

The firm now faces a full-year loss and the shares slumped 36p, or 21%, to a three-year low of 135p. Martell remains optimistic about the long-term future, however, believing that the 'burgeoning telematic market place represents a huge commercial opportunity' that could mean the group becoming at least cash-generative before the end of this year.

Despite a salesforce of 150 in core European markets selling its Fleetstar and RAC Trackstar services for tracing and guiding vehicles, Trafficmaster's sales volumes have taken longer to build than expected. Martell is also pinning hopes on its new low-cost off-board navigation system T-nav, which combines traffic information with Motorola's routing servers.

The company repeated claims by motor industry watchers that by 2005 'possibly 50% of all new cars in Europe and the US will be telematics-equipped and therefore potential customers of Trafficmaster'.

The firm expects that T-nav, alliances with Fiat, Norwich Union and Land Rover and extending deals with BMW, Citroen and the RAC will build revenue in 2002 and beyond.

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