logo-loader
viewTelit Communications PLC

Telit confirms swing to interim profit after offloading automotive business

Profits were boosted by US$57.2mln from the sale of the automotive business to Chinese firm TUS in February

Telit Communications PLC - Telit swings to profit as it offloads automotive business
Telit specialises in technology associated with the Internet of Things

Telit Communications PLCN (LON:TCM) swung to a profit in its latest half-year thanks to a boost from the sale of its automotive business.

The company, which specialises in the Internet of Things (IoT), reported a pre-tax profit of US$58.1mln for the 6 months ended 30 June, swinging from a US$12.8mln loss in the prior year.

As indicated in a pre-close update in July, profits in the period were boosted by US$57.2mln from the sale of the automotive business, while revenues had increased by 7.6% to US$180.3mln.

The company agreed to sell the business to Chinese firm TUS International for US$105mln in February.

Telit also reported an improvement in its net cash position to US$44.7mln from net debt of US$34mln a year ago.

Looking ahead, the company said it was “well positioned” to capitalise on growth opportunities in the IoT market and that it was confident that its performance for the full year would be in line with its expectations.

Chief executive Paolo Dal Pino said that following the automotive sale the company could now “refocus” its portfolio towards “more innovative industrial IoT products and services, all of which has helped improve our financial performance”.

"Thanks to these efforts, we have seen significant improvement in our cash generation, driven by solid revenue growth and our cost optimisation plan is fully on track to meet our targets", he added.

In a note, analysts at Telit’s house broker finnCap reiterated their 200p price target for the firm, saying that following the “good six months” the company was now “a well-capitalised global business” with a strong position at the leading edge of the IoT market.

In mid-morning trading on Monday, the shares were up 0.1% at 170p.

--Adds broker comment and share price--

Quick facts: Telit Communications PLC

Price: 159 GBX

AIM:TCM
Market: AIM
Market Cap: £210.98 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Iconic Labs shake up the media tech space with two new deals

Iconic Labs PLC (LON:ICON) is a media and technology business focused on online marketing, content and technology products. Chief Executive John Quinlan tells Proactive London how two new deals - a contract and a new JV - will have a significant impact on his business.  News here too on...

10 minutes ago

2 min read