CybIT FY09 Pretax Profit Up, Sales Rise 30%; New Credit Facility

CybIT Holdings PLC (CYH.LN) Friday said its full-year pretax profit increased due to a 30% rise in sales, although margins declined following the intgeration of the Truck24 business.

The company also agreed a new three-year credit facility with HSBC (HBC) to offset risk from its business with third party lease providers.

For the fiscal year ended March 31, the provider of vehicle, fleet and mobile workforce tracking solutions made a pretax profit of GBP2.1 million from GBP1.6 million in fiscal 2008. Sales rose to GBP25.5 million from GBP19.6 million a year earlier.

The firm said gross margins fell to 59% from 63%, due to lower margin products from its recently integrated Truck24 business. However, CybIT said it expects to improve operating margins as cost-cutting benefits materialize.

CybIT said it has agreed in principle a new three-year GBP4 million committed revolving credit facility with its lender HSBC.

It said this is to mitigate the fact that it uses a number of third party lease providers to generate cash to drive future growth.

Due to the global recession, the number of leasing companies prepared to fund telematics business has reduced significantly, CybIT said.

CybIT intends to start paying dividends and is applying for cancellation of its share premium account to facilitate future payments.

Company Web site: www.cybit.co.uk

-By Hannah Benjamin, Dow Jones Newswires; 44-20-7842-9298; [e-mail]