Positive operating result ensures an increase in turnover and a twofold profit forecast for 2005
Transics, the European market leader in on-board computers and telematics solutions for commercial vehicles, looks back at a particularly successful first year-half. Due to the upturn over the past six months, the company is raising its turnover forecast and doubling its profit forecast for 2005. The operating profit that brought about that growth is attributable to a winning combination of market maturity, innovation and experience.
Turnover and profit growth – faster than expected
The 2005 turnover, originally budgeted at EUR 16 million, has been increased to EUR 18.5 million. As a consequence, EBITDA rises to over EUR 4 million. The net result, which was originally estimated at EUR 1.3 million, is now put at EUR 2.7 million. Thanks to the positive cash flow - over EUR 3 million -, Transics has become a debt-free company.
“Achieving such an impressive growth was only possible by sustaining our corporate strategy, i.e. by targeting our niche market (road transport) and tuning product development and sales into that market. In this way, we can achieve our ultimate goal: to become the undisputed number one in our market segment. The fact that we have now been able to raise the earnings forecast for the current year, proves that we have not yet reached the end of our growth curve”, explained Ludwig Lemenu, Transics' managing director.
The right product at the right time
“This explosive growth is attributable to a series of different factors. In-house assets, such as a highly motivated team of specialists, a state-of-the-art product and the broad-based experience that is available within our company, all play a key role in our company's success. In addition, several external factors are equally crucial. We have experienced, for example, that the technology we use has matured and that the market now recognizes our solutions and products as being particularly all-inclusive and high quality. Timing, too, is of paramount importance. Innovations that capitalize on current topics, such as fuel consumption and communications, are particularly interesting for our customers: the haulage companies. These innovations clearly prove that our many years' of continual investment in research and development have borne fruit”, continued Walter Mastelinck, managing director.
An example of one such innovation is the combination of on-board computers offering GPRS communications and fixed monthly telecommunications and service fees. Whereas in the past, mobile communications were an unknown, variable cost, they have now become a low, fixed cost, ensuring that the customer can immediately calculate his/her financial benefit. In addition, Transics distinguishes itself from its competitors by its extensive ‘installed base' throughout Europe, in companies with small, medium-sized or large fleets.
The future
Transics' short-term strategy is, firstly, to continue its investments in innovation and product development, in order to lengthen its technological head start. Secondly, the company plans to expand its reach across Europe. Transics will continue to invest in the Benelux and French markets. Apart from that, Spain and Germany are on top of the priority list for further expansion and Transics is also on the look-out for new transport markets and regions throughout Europe.
Transics NV develops and commercializes on-board computers, software and telematics solutions for commercial vehicles in the transport and logistics sector. With an installed base of over 23 000 on-board computers, Transics NV is the largest company in its sector. Headquartered in Ypres (Belgium), Transics NV has offices in the Netherlands and France and is also active in Germany, Sweden, and Spain. The company is permanently expanding its European organization.
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