Satellite navigation company Trafficmaster has replaced chief executive Stuart Berman after revising its profits down 7% for the six months to June, the Daily Telegraph reported.
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The company, which launched its flagship in-car information system Smartnav in 2002, reportedly has suffered from a 5% drop in yearly new car sales, increased competition from portable navigation products and a bad debt of £563,000 from the collapse of MG Rover.
Berman, who will remain as an executive director, will be replaced by Tony Eales, the head of Trafficmaster’s rapidly growing US fleet management business Teletrac, the Daily Telegraph said.
The paper said Teletrac sales were up 60% in the first half, and it now contributes around 50% of the company’s £37 million annual earnings. The company’s two other divisions, Trackstar – a stolen vehicle recovery system – and UK Traffic Information, have also performed well but chairman Colin Walsh said the overall financial result was “disappointing”.
He reportedly said Berman would concentrate on bringing new products to the market. This is expected to include a pay-as-you-go insurance policy from Norwich Union based on Smartnav mileage information. “We’re not expecting [Trafficmaster] to be transformed in days or weeks, but we think it will be a significantly different business by Christmas as a result of new products and under Tony’s leadership.”
House broker Bridgewell yesterday slashed its pre-tax profit forecast for Trafficmaster for the year for the second time, down nearly 50% to £2.2 million, the Daily Telegraph added.
