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Traffic Master - Sharp increase in profit expected

October 2004

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • TFC
  • Price:
  • 82p
The last two years have seen Trafficmaster address a number of issues in its business with the fruits finally emerging when it reported interim results. The biggest headache went in January when it settled the Teletrac bond issue by negotiating early settlement. Not only did this result in interest charges falling by £0.8m but it gave rise to a £2.1m "windfall" profit. Including the "windfall," pretax profit was £3.5m on revenues which lifted by 14% to £17m.  Trafficmaster therefore ended the period on a debt free basis with £4.3m cash.Although Trafficmaster doesn't ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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